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General Provident Fund: GPF is a secure savings scheme for government employees, in which tax free interest and lump sum amount is available. Only employees appointed before January 1, 2004 get this benefit.
General Provident Fund Benefits: If you are in a government job, then every month you must have seen many times in your salary slip that some money is being deducted from your salary. It includes many things like PF, VPF and GPF. Many employees remain confused about GPF. GPF i.e. General Provident Fund is an excellent source of savings for government employees.
Every month a little amount is deducted from the salary and a huge amount comes to hand on retirement. This fund is so safe that it is managed by the government itself, no stock market turmoil harms this fund.
What is the benefit of investing in GPF?
The best thing about GPF is that it remains completely under the control of the government. No risk, just a little money deposited every month. Currently, it is getting 7.1 percent interest, which the government checks every three months. There has not been much change in this for the last several years, hence employees continue to get a stable return. Suppose an employee invests money in GPF regularly for 15 years, then on retirement he can get a huge amount of around Rs 31 lakh 60 thousand.
If deposited for 10 years then it reaches Rs 17 lakh 20 thousand. The most interesting thing is that the interest received on GPF is completely tax free. The amount deposited also gives you income tax exemption. This means savings are being made and tax is also being saved. After retirement, this money becomes a strong shield of financial security.
Who can deposit money in GPF?
This is only for those government employees whose job started before January 1, 2004. NPS i.e. National Pension System is applicable for those who join after that. Every month some part of basic salary and DA i.e. dearness allowance is deducted in GPF. The good thing is that you can decide yourself how much to cut. You can choose as per your choice from minimum 6 percent to full 100 percent. The more you deposit, the bigger amount you will get on retirement.
Why is GPF important?
Pension is available in government jobs, but GPF is an additional savings apart from that. This fund comes in handy when the salary stops after retirement. Helps in household expenses, children’s education, medical or any emergency. Tax free interest and lump sum amount make it more attractive. For employees who have this option, GPF is a reliable partner. In this, the worry about retirement is reduced, because the government gives guarantee.
