Public Provident Fund: Making income up to five lakh rupees tax-free is what the work profession most frequently requests. In addition, there is a call to raise the investment cap under Section 80C of the tax code.
What is PPF?
One of the most well-liked long-term investing options in India is Public Provident Fund (PPF). Investors can use this savings plan to continue saving long beyond retirement. Experts claim that creating a PPF account in a person’s life partner’s name will also quadruple that person’s PPF investment limit, however, the maximum for income tax exemption will remain at Rs 1.5 lakh.
Union Budget 2023
Every year, January ushers in fresh expectations. The average person’s expectations of the Union Budget also grow significantly at this time. Everyone has their own list of desires, even businesspeople, sales clauses, and financial specialists. It is also true that we can only achieve our long-term objectives by paying less income tax and saving money on taxes. Regarding the budget, everyone has offered their suggestions. The biggest demand from the job market is for up to Rs 5 lakh of income to be tax-free. In addition, there is a call to raise the investment cap under Section 80C of the tax code.
The Institute of Chartered Accountants of India (ICAI) has proposed raising the PPF’s yearly deposit cap from Rs 1.5 lakh to Rs 3 lakh in its suggestion. Along with the employed, businessmen also embrace this savings plan. Since these people do not even have the choice of investing in EPF, if this action is implemented by the government, it will prove to be the most advantageous announcement for those who are not paid a salary.
It is essential to increase the PPF’s deposit limit.
Increases in PPF deposit limits are required, according to the recommendation made by the ICAI. because it is a tax-efficient and secure savings plan. To encourage taxpayers to invest, the ICAI has also been requested to permit separate deductions on premiums for house insurance, travel insurance, personal accident insurance, etc.
Available in other metro cities is a 50% HRA benefit.
The benefit of an income tax deduction is available to taxpayers when it comes to the House Rent Allowance (HRA). Additionally, this advantage is offered for both metro and non-metro areas. Experts now recommend the benefit of dearness allowance, which equals 50% of the base pay. Be extended to other major cities outside Delhi, Mumbai, Kolkata, and Chennai.