PPF Reinstated account - how much can I claim under Section 80C?

I had open PPF account in 2004 and paid Rs. 20000/-. Later on, I have moved on to US and had not invested any amount in PPF in 2005, 2006, 2007, 2008, 2009 and 2010. Now again, I have reinstated by PPF account by paying Rs. 3000/- (500X6) (minimum Rs. 500/- per year) along with PPF Reinstatement default fee of Rs. 300/- (50X6) (Rs.50/- per default year). Plus I have also deposited Rs. 25000/- for the current year 2011. I have query that - How much can I claim under Section 80C for the current year 2010-11
1. Can consider full amount Rs. 28300 ( Rs. 3000+300+25000).
2. Or only Rs. 28000 (Rs.3000+25000), as Rs. 300 is PPF Reinstatement default fee

You can claim only 28000/- under section 80C. PPF Reinstatement fee is penalty fee paid by you so it’s not eligible for claim.

Thanks policywala! I have one more query - Can I claim upto 1,00,000 (if some of this amount is reinstatement fee) in PPF investment or 70,000 is the limit?