Last Updated on 11 months ago by Raj Kumar
General Provident Fund | GPF
There are numerous investment options available in India out of which General Provident Fund a.k.a GPF is a very popular investment option among government employees. Let’s understand what is GPF and whether you should invest in General Provident Fund or not.
What is the General Provident Fund(GPF)?
The General Provident Fund(GPF) is a type of savings scheme which is only available for Government employees by which the Government employees can contribute some part of their salary as a retirement saving. Non-Government employees can not contribute to the GPF.
Govt employees can opt to contribute a certain portion of their salary towards the GPF to earn a fixed interest rate; the accumulated amount is payable when the employee retires from service.
Eligibility criteria for the General Provident Fund(GPF)
In order to invest in GPF below are the eligibility criteria-
- Permanent government employees.
- Temporary government employees after a continuous service of one year or more.
- Re-employed pensioners (provided such pensioner is ineligible for Contributory Provident Fund).
- Govt employees who have joined service before 1st Jan 2004.
General Provident Fund(GPF) Rules
As per Ministry Of Personnel, Public Grievances & Pensions Below are the rules for GPF –
- Government employees eligible for the General Provident Fund need to contribute a minimum of 6% of their salary toward GPF.
- The maximum amount an individual can contribute equals 100% of his/her income.
- Contribution to GPF can only be stopped in the case of suspension or retirement.
The interest rate for the General Provident Fund(GPF)
The GPF Interest Rate for the 1st Quarter of Financial Year 2020 – 21 (April to June) is set at 7.1%. In the previous quarter, it was set at 7.9%.
General Provident Fund(GPF) Tax exemptions
GPF is a EEE tax-free retirement-cum savings scheme. Therefore, the contributions, interest earned on it as well as the returns from a GPF account are exempt from tax calculations under Section 80C.
Consider reading – EPF vs PPF vs GPF vs VPF
What is the full form of GPF?
General Provident Fund.
Is GPF and PPF the same?
No GPF is General Provident Fund which is only available for Govt employees. PPF is Public Provident Fund that is available for the general public.
How can I access my GPF account?
Different states in India have different GPF portal. You need to go to the corresponding state portal site to access your GPF account.
Is GPF taxable after retirement?
NO. GPF income comes under EEE category so any income from GPF is completely tax free.
Which is better PPF or GPF?
PPF and GPF offer same rate of interest. GPF is an easier option for Govt employees to contribute towards their savings so it’s a preferred option for them. But looking at the flexibility of withdrawing money and locking period associated with PPF and GPF , PPF is a better option than GPF.
Can I have both GPF and PPF?
Yes you can have both PPF and GPF accounts if you are a govt employee. If you, not a govt employee then you can not have GPF account.
Is GPF eligible for 80c?
Yes. Contribution towards GPF is eligible for 80C tax deductions.
How much can be deposited in GPF?
Government employees eligible for the General Provident Fund can contribute a minimum of 6% of their salary toward GPF, the maximum amount an individual can contribute equals 100% of his/her income.
What is the minimum contribution to GPF?
Government employees eligible for the General Provident Fund can contribute a minimum of 6% of their salary toward GPF.
How to download GPF statement?
Employees of Govt institutions have to login to their state GPF portal to download their GPF statement.
How can I check my GPF statement in Karnataka?
Employees of Karnataka givt can access their GPF account by visiting https://agkar.cag.gov.in/agogpf/ which is the portal for principal account general Karnataka.
What are the eligibility criteria for GPF?
Permanent government employees.
Temporary government employees after a continuous service of one year or more.
Re-employed pensioners (provided such pensioner is ineligible for Contributory Provident Fund).
Govt employees who have joined service before 1st Jan 2004.