PPF investment limited to Rs.70000

Nitin asked:
My CA says that I can deposit only Rs.70,000 in a PPF account in one year to claim deduction u/s 80C but someone told me that there is no such provision in Income tax act,1961. I wanted to invest Rs.1 lacs to get the benefit of the PPF scheme. Please guide me.

Answer:
As a matter of fact both the persons are correct. Though there is not limiting provision in Income tax act,1961, it is the PPF rules 'THE PUBLIC PROVIDENT FUND SCHEME, 1968' which limit the investment into PPF to Rs.70,000 in a financial year. Further the limit is in totality of your account and an account of a minor of whom you are guardian. You can view the PPF rules in pdf format HERE