GPF full form

What is the full form of GPF?

GPF always stands for General Provident Fund. General Provident Fund is a scheme for Government employees in which Government employees give some part of their salary to the GPF account and then this collected balance will be paid to the employee at the time of their retirement. It is a very beneficial scheme for Government employees to save money for their retirement time.

About general provident fund(GPF)

The rate of interest of the general provident fund is occasionally revised as per the government's rule.This scheme is managed by pensioners welfare and department of pension and to become the official member of GPF, a Government employees must contribute their some part of salary for GPF account and this contribution should done monthly.Once the government employee retires the final payment will given to the employee.

There is also a death benefit in this scheme, for joining the general provident fund. The employee always needs to nominate a family member and this nominee has all rights to receive the final payment on behalf of a government employee. So in case of death the nominee received final payment with an additional amount however there are also terms and conditions like this additional amount does not exceed over 60000. There is also tax benefit available in the general provident fund and with that one can use tax benefit on interest,under section 80c of Income Tax Act.

Eligibility criteria for general provident fund(GPF)

To open a general provident fund account a person must be a government employee and also have Indian Residency.

A government employee must belong to a specific salary class.

To become a member of a general provident fund person should be a government employee because any employee of the private sector is not eligible for the scheme.

How to open general provident fund account(GPF)

It is a very quick process to open a general provident fund account. A person has to fill form in a appropriate way and fill all the correct information there and then Submit it to the account general of their respective States and then they will assign an account number and they also provide information about the monthly deduction from employee salary to drawing and distribution of that establishment and at last, at the end of financial year a statement of closing balance, debits and credits is provided to the employee.

What is the difference between GPF and PPF(Public provident fund)

• For general provident fund a person should be a government employee who was hired before January 1 2004 while for public provident fund any Indian who is above 18 years is eligible for this scheme.

• For the maturity period, in a general provident fund the final amount can only be withdrawn after the retirement of an employee while in a public provident fund one can withdraw after 15 years and also can extend it for 5 years.

• For deposit, in a general provident fund a person must contribute 6% of employee salary while in a public provident fund 500 rupees is the minimum contribution per year.

• For loan facility, in general provident fund a person can apply for loan anytime while still in service while in public provident fund loan is only possible on 3rd and 6th facials year of opening the public provident fund accounts.