That is, between April and June, they will get 7.1 percent interest on their GPF account. There is no deduction in this. Explain that GPF account is that provident fund, in which there is no contribution from the government or the employer. Only employees contribute to this.
According to Ashish Vachhani, Joint Secretary in the Government of India, during the year 2022-2023, the interest rate on the total deposits of the consumers of General Provident Fund and other funds will be 7.1% from April 1, 2022 to June 30, 2022.
This rate is applicable from April 1, 2022. This will be reviewed again in July and the new rate of interest for the next quarter will be released later.
On which funds will this interest rate be applicable?
General Provident Fund (Central Services).
Contributory Provident Fund (India).
All India Services Provident Fund.
State Railway Provident Fund.
Common Provident Fund (Defence Services).
Indian Ordnance Department Provident Fund.
Indian Ordnance Factory Workers Provident Fund.
Indian Naval Dock Workers Provident Fund |
Defense Services Officers Provident Fund.
Armed Forces Personnel Provident Fund.
GPF account will be taxed
There is another important news for government employees that now they will come under the tax net on contribution above Rs 5 lakh in GPF account. CBDT has implemented new income tax rules from April 1, 2022.
Contribution to Employee Provident Fund and GPF accounts has been capped. Employees will come under the purview of tax if the contribution in the EPF account exceeds Rs 2.5 lakh in a business year and the amount is deducted above Rs 5 lakh in the GPF account. That is, income tax will be charged on the interest earned on the above amount.
first published:April 5, 2022, 5:25 p.m.