Thursday 23 February 2012

PPF Limit Increase : Duh!

I had written a series of articles in November 2011 about the change in the PPF rate of interest and its general economic implications.  I got some pretty interesting comments based on that series like the one here.  (Are PPFs really that risky) I seem to have gotten so carried away by that series, that I completely missed the fact that the PPF Limit was also increased at the same time.  Effective December 1st, 2011, the limit per year for PPF investment has been increased from Rs70,000 to Rs1,00,000 per annum.  (Yes, that's 1Lakh Rupees per year) This means for the current financial year, if you had already maxed out your PPF contribution of the year for Rs70,000, you can now go in and add an additional Rs30,000 before March31, 2012.  Starting next financial year, you can invest upto Rs1,00,000 into the PPF account.  This sounds like a good deal to me.  Now as long as the finance minister could also increase the 80C limit, we would all be in good shape!!

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