Yes – You can now invest extra Rs 50,000 in your PPF account and it will be accepted

POSTED BY Jagoinvestor ON August 23, 2014 COMMENTS (52)

Congratulations, Now you can now go and deposit the extra Rs 50,000 in your PPF account as the limit for your PPF investments was raised from Rs 1 lac per year to Rs 1.5 lacs in this budget.


A lot of investors had invested Rs 1 lac in their PPF account this year start and when the budget raised the limit by extra Rs 50,000 . They had this big question – “Can I invest Rs 50,000 more in my PPF account this year and get the income tax benefit?”

The thing is even if the budget has mentioned that PPF limit was raised, it does not get increased instantly. I mean the banks officials and post office staff does not allow the max limit the same moment. A separate notification is required by the RBI after making the required amendments in the Public Provident Fund scheme and that’s exactly what happened on 22nd Aug .


NOTIFICATION NO. GSR 588(E) [F.NO.1/2/2014-NS.II], DATED 13-8-2014

In exercise of the powers conferred by sub-section (4) of Section 3 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government hereby makes the following further amendments to the Public Provident Fund Scheme, 1968, namely :—

1. (1) This Scheme may be called the Public Provident Fund (Amendment) Scheme, 2014.
(2) It shall come into force from the date of its publication in the Official Gazette.

2. In the Public Provident Fund Scheme, 1968,—

(i) in paragraph 3, in sub-paragraph (1), for the letters and figures “Rs.1,00,000”, the letters and figures “Rs.1,50,000” shall be substituted;

(ii) In Form-A, in paragraph (iv), for the letters and figures “Rs.1,00,000”, the letters and figures “Rs.1,50,000” shall be substituted.

Below you can see the copy of the notification which came 1 day back and the same has been sent to all the banks and post office departments and RBI has asked them to now incorporate it and also inform to all the PPF subscribers.

ppf limit raised notification rbi

How much extra income tax you will save by investing Rs 50,000 more in PPF ?

If you are into the highest bracket of 30% , in that case you will save 30% tax on the extra Rs.50,000 invested in PPF. So that comes to Rs.15,000.

Earlier you used to pay income tax on Rs.50,000 (because you had maxed out your investments in income tax saving products) , but now you will save 50,000 and also pay Rs.15,000 less in your income tax (because your taxable income will come down by 50,000)

So now you can visit your SBI Bank or Post office or any other bank where you have your PPF account and invest the extra Rs.50,000 🙂

52 replies on this article “Yes – You can now invest extra Rs 50,000 in your PPF account and it will be accepted”

  1. Malaya Sahu says:

    Can one deposit Rs.150000 cash in PPF account at one go?

  2. Venky says:

    Hi Frdz,

    Can you please guide which is the best time to open PPF account . I dnt have much idea So please frdz share your experience and also plz let me know which are the documents required to open PPF account (I already having savings accounts with SBI and bank of baroda).Thanks in advance.I hope i would get reply from our frdz soon…

    1. You just need a identity proof along with address proof and a picture !

  3. Renga says:

    I have a query on PPF, my self has PPF account in Post Office, and planning to open PPF acc for my wife in SBI as she has account with SBI. Now the question is can I deposit 1.5 lakh in my PPF account and another 1.5lakh in my wife’s PPF account?

      1. tkl says:

        Please explain.. Will be helpful to all.

        1. Hi tkl

          I am not clear on what is your question. Please repeat it with more clarity


  4. Rahul says:

    Hello Manish,

    Thanks for this info,

    However i am unclear on your mention about tax benefit of saving extra 50K in PPF
    You mentioned that, “If you are into the highest bracket of 30% , in that case you will save 30% tax on the extra Rs 50,000 invested in PPF . ”
    1) But as per my understanding PPF savings comes under section 80C.
    And Section 80C allows to invest in various others forms of investments such as Insurance/LIC/ULIP and on top of it your own Company PF.
    2) And once you cross the highest bracket of 30%, its obvious that, more than 50% of your section 80C comprises of Company PF.
    Assuming your individual Company PF contribution is 6K per month. So total 72K of section 80C gets occupied by this. And you left to do your own savings of just 78K.
    Hence even if a person invests 1.5L in PPF, he actually does not get tax benefit for whole 1.5L of investement in case of highest bracket of 30%.
    Having said that PPF saving of 1.5L should be the first priority of each individual of highest bracket of 30%.

    1. Yes, that statement is for someone who is looking at investing full 1.5 lacs in PPF

  5. Amit Jandial says:

    Bad….Post office in my district is still not accepting the other 50,000 rs. They say they have not received any notification yet. Time to transfer to SBI becuase of their laid back attitude

    1. Have you tried it now !

      1. Shashank Shankar says:

        PPF in my district Post Ofiice (Motihari-Bihar) isn’t accepting more than 1 Lakh. They are saying, need to change in software. What should I do in this condition ?

        1. You cant do much in that case .

  6. PFInsights says:

    Indian Post website mention the new limit i.e. Rs1.5lakh on it website
    Are they still rejecting the receipts above Rs1 lakh?

    Jagoinsvestor is doing an excellent job of timely investor education. Keep up the good work. I have also started a blog on personal finance insights. Please visit at

    1. I think one should wait for some months before depositing . But now as the notification has come from RBI , it should not be rejected !

  7. Renga says:


    I have a PPF account with post office, do you know if I can pay the premium through netbanking this will avoid me having to go the postoffice every time I want to deposit..?

    1. Shikher says:

      As far as i know, PPF deposits in post office cannot be done online through netbanking. You would need to physically visit the post office and then deposit the amount you need to in your PPF account.

  8. umesh raghvani says:

    i will open ppf acount myself,wife, & dauther

  9. raj says:

    My only query is will the people like me who had invested money prior to this notification given Interest for the month of August 2014 or Not.

  10. Reid says:

    Thanks, Manish & Nandish! I look forward to taking advantage of this as soon as possible.

  11. Jayesh Darji says:

    Dear Manish bhai,
    one another fan of yours till read and share all of ur articles ,yes really challenging for anyone to off tradition of insurance policies but you are change our style of watching it as many many thanks and yes i am start my PPF ac this year only (I didn’t know even of it!!!!!) please inform us any new investing plans pl MF
    Jayesh darji

  12. Suresh says:

    I went to deposit additional Rs. 50,000/- in my PPF account, with Mahim Head Post Office, Mumbai, today i.e. on 30th August 2014, however the counter person refused to accept. It seems “Modi Governance” also take looooooong time to percolate.

  13. raj says:

    Dear Friend,
    We have seventeen PPF accounts in my extended family inc. Parent and child combo.
    Well we had successfully transferred additional Rs. 50,000/- on 3 August 2014! in nine accounts.
    No problem faced.

    However, few wise men in my family prefer to do these transaction offline however, they were not entertained at branch for this!

    My only query is will the people like me who had invested money prior to this notification given Interest for the month of August 2014 or Not.


  14. Gaurav says:

    Does it matters where city I am currently residing before I open my PPF Ac. I am living away from my hometown and can migrate back in a couple of years. So can I face any problem if I want to withdraw and close PPF Ac?

  15. Sanjay says:


    I tried to deposit additional 50K in my PPF A/C linked to my ICICI Bank A/C. But the transaction was rejected. After enquiry with bank, they informed me that ICICI bank has not received permission to accept the additional amount !

    Anyone has similar experience ?

    1. Neeraj says:

      I tried depositing additional 50k yesterday (30 Aug) in PPF linked to ICICI Bank A/C and transaction was successful.

  16. Shikher says:

    Can someone please let me know as to when can we do the online transfer for extra 50 K if the PPF account is maintained in SBI? Has anyone tried doing so already?

    1. Hemant says:

      it is working now through Net banking in SBI.

    2. You can now do the online transfer of extra 50k

  17. Bss says:

    I transferred extra 50K online to my SBI PPF on 3rd of august but the amount was not accepted and returned back. I will try again after few days.

    1. Saravanan. A says:

      It might be working now, there is a banner in onlinesbi that is allowed as GO dated 13th Aug 2014. You can try it.

    2. Niraj Kumar says:

      I transferred 50K on 26th and its not rejected and it shows total balance in PPF account.
      But i am not sure we would get the interest of this 50K till 15/10/2014 because its effective from 15/10/2014
      flash message on SBI:

      Ref. GOI Notification dated 13.08.2014, annual ceiling for credit to PPF accounts enhanced to Rs.1.50 lacs in CBS as well as Net Banking”. With effect from 15/10/2014, a service charge of Rs.25/- will be recovered per instance of failed standing Instruction/bill payment scheduled or with auto pay instruction, wherever the reason of failure is sufficient/clear funds not available or account has hold.

      1. Ramesh says:

        You are mixing two different message. The 15/10 date is for introduction of the service charge. The upper limit has been increased to 1.5lac in SBI from 21/08.

        Here is the link:

  18. saarebank says:

    Very useful information here

  19. yeshwant says:

    Very useful info on time.

  20. Pradeep H says:

    Hi mannish,
    Somewhere it was stated that only 12 deposits allowed per year towards ppf contribution. Is there any change in that. As many banks provides zero balance sb account if we setup monthly contribution. But that time if we want to contribute extra, that will become 12+ occurrence. Pls clarify. (I hv ppf in icici)


    1. NO , 12 is the maximum times you can put money in PPF in a year !

  21. Avijit says:

    Dear Manish

    Its bit off topic. Can you please do a article on REIT as investment option, by comparing with existing REITs of the other countries, also taking care of Indian scenario.


    1. As the REIT are not yet launched in India, one can comment too much on it 🙂

  22. Praveen says:

    Please let me know if anybody had luck transferring the amount(Extra 50k) online.


    1. Saravanan. A says:

      SBI online after login says its allowed both in CBS and Netbanking. So I guess it will be working in onlinesbi.

    2. Niraj Kumar says:

      Hi Praveen,
      I transferred additional 50K using SBI online bank transfer and it is showing total balance even after 2 days.

  23. ANIL HAJARE says:

    Thanks a lot for updating us on fresh changes in the rule of Investment in PF (maximum limit) I. e. from 100000 to 150000/- per annum with effective from current BY.

  24. B Murali Mohan says:

    Thanks Manish & Nandish….. for the latest and important information shared…..
    God Bless You both!!!


  25. Renga says:

    Thanks for the info, I was under impression it will be effective from next fin year.

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