Public Provident Fund: The biggest demand from the job profession is to make income up to five lakh rupees tax free. Apart from this, there is also a demand to increase the investment limit under Section 80C of Income Tax.
Union Budget 2023: Every year the month of January comes with new hopes. During this time, the expectations of the common man also increase a lot from the Union Budget. From businessmen to saldy clauses and finance experts, everyone has their own wish list. It is also true that our long term goals can be fulfilled only through less income tax and tax savings. Everyone has given their recommendations regarding the budget. The biggest demand from the job profession is to make income up to Rs 5 lakh tax free. Apart from this, there is also a demand to increase the investment limit under Section 80C of Income Tax.
Businessmen’s Favorite Savings Scheme
In the recommendation sent by the Institute of Chartered Accountants of India (ICAI), it has been recommended to increase the annual deposit limit of PPF from Rs 1.5 lakh to Rs 3 lakh. Along with the employed, this is also a favorite savings scheme for businessmen. If this step is taken by the government, then it will prove to be the most beneficial announcement for non-salaried people, because such people do not even have the option of investing in EPF.
It is necessary to increase the deposit limit of PPF
In the suggestion sent by ICAI, it was said that it is necessary to increase the deposit limit of PPF. Because it is a safe and tax effective savings scheme. ICAI has also been asked to allow separate deductions on premiums for house insurance, travel insurance, personal accident insurance etc. to encourage tax payers to invest.
50% HRA benefit available in other metro cities as well
When it comes to House Rent Allowance (HRA), tax payers get the benefit of income tax deduction. This benefit is also available on the basis of metro and non-metro cities. Now experts have also suggested that apart from Delhi, Mumbai, Kolkata and Chennai, the benefit of dearness allowance of 50 percent of the basic salary should also be available in other metro cities.
What is PPF?
Public Provident Fund (PPF) is one of the most popular, long-term investment options in India. This is a savings scheme for investors to save for a long time after retirement. According to experts, opening a PPF account in the name of one’s life partner will also double the investor’s PPF investment limit, although the income tax exemption limit will still be Rs 1.5 lakh.
