Here are 10 things to know about General Provident Fund (GPF):
A government employee becomes a member of GPF by contributing a certain percentage of his/her salary to the account, according to pensioners' official portal -pensionersportal.gov.in.
At present, GPF fetches an interest rate of 8 per cent.
A subscriber is required to subscribe monthly to GPF except during the period when he is under suspension.
Subscriptions to the general provident fund are stopped three months prior to the date of superannuation, according to pensionersportal.gov.in.
On retirement of a subscriber, instructions are issued for immediate payment of the final balance on retirement.
A subscriber, at the time of joining the fund is required to make a nomination, in the prescribed form, conferring on one or more persons the right to receive the amount that may stand to his credit in the fund in the event of his death, before that amount has become payable or having become payable has not been paid.
No application is required to be submitted by the subscriber for final payment from the fund.
Under the GPF rules, on the death of a subscriber, the person entitled to receive the amount standing to the credit of the subscriber shall be paid an additional amount equal to the average balance in the account during the three years immediately preceding the death of the subscriber, subject to certain conditions provided in the relevant rule.
The additional amount payable under that rule shall not exceed Rs 60,000. To get this benefit, the subscriber should have put in at least 5 years of service at the time of his/her death.
According to Interim Budget 2019-20 proposals, people having taxable income of Rs 6.5 lakh per annum will be to avail "tax rebate" provided they invest Rs 1.5 lakh in specified investments such as PPF, General Provident Fund (GPF) and insurances. The proposed rebate on tax liability will be applicable from April 1, 2019.