It is likely that Budget 2016 may force you to scout for other investment options, and not park a large sum in your Provident Fund account.
The Finance Ministry is mulling on introducing penalties on PF investments beyond the limit of Rs 1.5 lakh . Though one can avail the benefit on tax under Section 80 C of the Income Tax Act on the PF deposits up to 1.5 lakh per annum, one is free to deposit more and keep earning high tax free interest on the money invested.
