Who is eligible for GPF?
Who is eligible for GPF?
Anyone who fulfills the below-mentioned criteria can contribute to the GPF Account: A government employee who is a resident of India. General Provident Fund is compulsory for government employees belonging to a certain salary class. Any employee of a private sector company is not eligible for the General Provident Fund.
What is the minimum amount of GPF subscription of the government employee?
sum, so expressed, not less than 8 per cent, of his emoluments and not more than his total emoluments. (c) When a Government servant elects to subscribe at the minimum rate of 6 per cent, or 8 per cent, as the case may be, the fraction of a rupee will be rounded to the nearest whole rupee, 50 p.
What is the maximum limit of GPF subscription?
The amount for GPF subscription is fixed by the subscriber only. However, the contribution rate should not be less than 6% of the total salary of the employee. The maximum contribution can be 100% of the employee’s salary.
Can GPF be retained after retirement?
(b) It is clarified that if a retiree intends to retain his GPF accumulation with the Government after a permissible period of 6 months as prescribed in the GPF rules, he has to give his written request for the same well before the expiry of the permissible period of 6 months 2.
Who is sanctioning authority for GPF withdrawal?
(1) The president may, in special circumstances, sanction the payment to any subscriber of an advance if he is satisfied that the subscriber concerned requires the advance for reasons other than those mentioned in sub-rule (1).
What is the rule of GPF?
Deposit rules
| Minimum amount | The amount that a subscriber contributes shall not be less than 6% of his/her total income. |
|---|---|
| Maximum amount | A subscriber cannot contribute any amount that exceeds his/her total income. |
| Frequency | Individuals shall make a deposit every month. But, it does not apply when such subscriber is suspended. |
What is GPF withdrawal rules?
A subscriber can withdraw an amount equal to 75% of the outstanding balance in such PF or his/her 12 months’ emoluments, whichever is lower. It is available for purposes of funding education or any ceremony, like the marriage of self or a dependant family member.
Can we take loan from GPF?
GPF and PPF loan facility: GPF Advance is a facility offered to the account holder/employee wherein he or she can obtain loan against GPF throughout his or her career. The loan can be repaid in regular instalments. No interest rate is applied to the borrowed sum.
How is GPF pension calculated?
W.e.f 1.1. 2006, Pension is calculated with reference to emoluments (i.e.last basic pay) or average emoluments (i.e. average of the basic pay drawn during the last 10 months of the service) whichever is more beneficial. The amount of pension is 50% of the emoluments or average emoluments whichever is beneficial.
What are the rules for withdrawing from a GPF account?
The primary criterion here is that individuals must complete at least 10 years of service before being eligible to withdraw from their GPF. Prior to 2017, this limit was set at 15 years. The following points discuss the rules surrounding withdrawal from a General Provident Fund account –
What are the GPF rules for nominee contributions?
However, contributions continue until 3 months before retirement as per GPF rules. Individuals can declare a nominee when first subscribing to the General Provident Fund. As per rules, the nominee should be a family member. Subscribers may also declare more than one nominee.
What is the difference between PPF and EPF and GPF?
It includes the Public Provident Fund (PPF), Employee’s Provident Fund (EPF), and the General Provident Fund (GPF). As it stands, the rules of these three saving instruments differ. Resultantly, the benefits they offer to subscribers also vary.
What are the General Provident Fund rules?
The General Provident Fund is one of the most lucrative savings instruments for its tax benefits. The contributions made, interest accrued, and returns received are tax-exempt under Section 80C of the ITA, 1961. These are the GPF rules that individuals must bear in mind when comparing different savings devices.
