GPF Interest Rate Fixed 7.9% for Further Three Months

GPF Interest Rate Fixed 7.9% for Further Three Months

Interest Rate for General Provident Fund Fixed 7.9% with effect from 1.7.2019

The Central Government decided to fix the interest rate for the subscribers of General Provident Fund @ 7.9% between the period from 1.7.2019 to 30.9.2019.

Earlier in the period between April and June 2019, the rate of interest for the GPF was 8% (w.e.f. 1st April 2019 to 30th June 2019).

The below list of funds also carry interest at the rate of 8% from April to June 2019.

1. The General Provident Fund (Central Services).
2. The Contributory Provident Fund (India).
3. The All India Services Provident Fund.
4. The State Railway Provident Fund.
5. The General Provident Fund (Defence Services).
6. The Indian Ordnance Department Provident Fund.
7. The Indian Ordnance Factories Workmen’s Provident Fund.
8. The Indian Naval Dockyard Workmen’s Provident Fund.
9. The Defence Services Officers Provident Fund.
10. The Armed Forces Personnel Provident Fund.

GENERAL PROVIDENT FUND FOR THOSE WHO HAVE BEEN RECRUITED ON OR AFTER 1-1-2004

In the 47th National Council JCM meeting held on 13-4-2019, the Staff side reiterated their demand and requested that the GPF scheme may be extended to the NPS employees who opt for the same as an additional saving benefit.

The Cabinet Secretary desired that the demand of the Staff Side may be considered favorably. Your good self has also assured that the demand of the Staff side would be considered and decision taken at the earliest.

In view of the above we submit the following justification for extending the GPF benefit on optional basis to the employees who are governed under the NPS scheme.

The advantage of GPF to the employees is as follows:

(1) The interest rate for GPF accumulation is 8% as on date.

(2) Advances from GPF is permissible for the following purposes.

(i) Illness of self, family members or dependents.

(ii) Education of family members or dependent of the subscriber. Education will include primary, secondary and higher education, covering all streams and educational institutions.

(iii) Obligatory expenses, viz. betrothal, marriage, funerals or other ceremonies.

(iv) Cost of legal proceedings

(v) Cost of defence

(vi) Purchase of consumer durables

(vii) Pilgrimage and visiting places of eminence. This will include any travel and tourism related activities.

(3) Apart from the advances as mentioned above GPF subscribers are entitled for withdrawals from GPF for the following purposes.

(i) Education : This will include primary, secondary and higher education covering all streams and institutions.

(ii) Obligatory expenses, viz. betrothal, marriage, funerals, or other ceremonies of self or family members and dependents.

(iii) Illness of self, family members or dependents.

(iv) Purchase of consumer durable.

(v) Housing including building or acquiring a suitable house or a ready built flat for his residence.

(vi) Repayment of outstanding housing loan.

(vii) Purchase of house site for building a house.

(viii) Constructing a house on a site acquired.

(ix) Reconstructing or making additions on a house already acquired.

(x) Renovating, additions or alterations of ancestral house.

(xi) Purchase of motor car/ motor cycle/ scooter etc. or repayment of loan already taken for the purpose.

(xii) Extensive repairs / overhauling of motor car.

(xiii) Making deposit to book a motor car / motor cycle / scooter, moped, etc.

Apart from the above tax deduction under section 80C is also available. Annual statements will be issued on the 1st of April every year.

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