General Provident Fund | GPF | 2022

General provident fund (GPF). how to invest in GPF? How to download GPF slip statements online for Odisha, Karnataka, and other states.

This post was most recently updated on December 11th, 2022

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.

General Provident Fund | GPF

What is the General Provident Fund(GPF)?

The General Provident Fund (GPF) is a savings scheme offered by the Government of India for its employees. The GPF is a long-term savings scheme and is intended to provide employees with a secure source of retirement income.

The GPF is a voluntary scheme, and employees can choose to join or opt-out of the scheme at any time. To join the GPF, employees must contribute a portion of their monthly salary to the fund, and the government will match the employee’s contribution.

The GPF offers several benefits to employees, including:

  1. Guaranteed returns: The GPF offers a guaranteed rate of return, which is higher than most other savings schemes. This means that employees can expect to earn a higher return on their savings than they would with other types of investments.
  2. Flexible contribution: Employees can choose the amount they want to contribute to the GPF and can adjust their contribution at any time. This allows employees to save as much or as little as they want, depending on their financial situation.
  3. Tax benefits: Contributions to the GPF are tax-deductible, which means that employees can reduce their taxable income by contributing to the fund. This can result in significant tax savings for employees.
  4. Security: The GPF is backed by the Government of India, which means that employees can be confident that their savings are safe and secure.

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 the Financial Year 2022 – 23 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, and 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

General Provident Fund rules in India

Here are some of the rules and regulations for the GPF:

  1. Eligibility: To be eligible for the GPF, employees must be permanent, pensionable employees of the central or state government, or of a local authority or statutory corporation. Employees of semi-government organizations and public sector undertakings may also be eligible for the GPF, depending on their employer’s rules.
  2. Contributions: Employees who choose to join the GPF must contribute a portion of their monthly salary to the fund. The contribution amount is usually fixed and is determined by the employee’s employer. The government will match the employee’s contribution and will deposit the funds into the employee’s GPF account.
  3. Withdrawals: Employees are not allowed to withdraw funds from their GPF account until they retire or leave their job. In case of an emergency, employees may be allowed to withdraw funds from their GPF account, but only with the permission of their employer.
  4. Interest: The GPF offers a guaranteed rate of return, which is higher than most other savings schemes. The interest rate is determined by the government and is revised periodically.
  5. Tax benefits: Contributions to the GPF are tax-deductible, which means that employees can reduce their taxable income by contributing to the fund. This can result in significant tax savings for employees.

The disadvantages of the General Provident Fund

Some of the disadvantages of the GPF include:

  1. Limited flexibility: The GPF is a long-term savings scheme, and employees are not allowed to withdraw their savings until they retire or leave their job. This means that employees cannot access their savings in case of an emergency, and must wait until they retire to use the funds.
  2. Limited investment options: The GPF is a government-backed scheme, and the funds are invested in low-risk, low-return instruments such as government securities. This means that employees may not earn as high a return on their savings as they would with other types of investments.
  3. Inflation risk: The GPF offers a guaranteed rate of return, but this rate may not be enough to keep pace with inflation. This means that the purchasing power of the savings in the GPF may decrease over time, and employees may not be able to maintain their standard of living in retirement.

Which is better PPF or GPF?

PPF and GPF offer the 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 the locking period associated with PPF and GPF, PPF is a better option than GPF.

How to Download Odisha GPF Slip Online

Estimate Cost : 00 INR

Time Needed : 00 days 01 hours 00 minutes

Steps to Download Odisha GPF Slip Online

  1. Visit Odisha General Accountant Page agodisha.gov.in


    Visit GPF Odisha portal

  2. Enter GPF account number and Provide a registered Password



    Enter your GPF account number and password if you are already registered. If not then register with your GPF account number. You will need the below details

    GPF A/C Number
    Date Of Birth
    Mobile Number
    Email Id
    PAN Card Number

  3. Select the option Account Management form dashboard Menu and Here select Annual Report



    select the Account Management option and tap on the Annual report

  4. Select Year from the center of the page and click Submit


    mention year and click the submit option

Tools
  • Odisha General Accountant Page agodisha.gov.in
Materials
  • GPF Slips online.

FAQs on General Provident Fund(GPF)

  1. What is the full form of GPF?

    General Provident Fund.

  2. 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

  3. How can I access my GPF account?

    Different states in India have different GPF portals. You need to go to the corresponding state portal site to access your GPF account.

  4. Is GPF taxable after retirement?

    NO. GPF income comes under the EEE category so any income from GPF is completely tax free.

  5. Can I have both GPF and PPF?

    Yes, you can have both PPF and GPF accounts if you are a govt employee. If you, are not a govt employee then you can not have a GPF account.

  6. Is GPF eligible for 80c?

    Yes. Contribution towards GPF is eligible for

  7. 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.

  8. 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.

  9. How to download GPF statements online?

    Employees of Govt institutions have to login to their state GPF portal to download their GPF statement.

  10. How can I check my GPF statement in Karnataka?

    Employees of Karnataka govt can access their GPF account by visiting https://agkar.cag.gov.in/agogpf/ which is the portal for the principal account general Karnataka.

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