Top 5 Things You Need to Know About GPF Information for 2021-22

The General Provident Fund (GPF) is a popular saving scheme for government employees, providing an attractive interest rate and tax benefits. However, with new changes coming in for 2021-22, it’s important to stay informed so you can make the most out of your GPF. Here are the top 5 things you need to know about GPF information for 2021-22:

1. Increased interest rate

The interest rate for the GPF scheme has been increased from 7.9% to 8% for the financial year 2021-22. This is great news for government employees looking to save their money and earn a good return on their investment. With higher interest rates, the GPF scheme becomes an even more attractive option for government employees.

2. Digitalization of GPF

With the advancement of technology, the government has introduced digitalization of GPF accounts. This means that government employees can access their GPF account online, check their balance, submit applications, and make withdrawals easily. This move towards digitization will make it convenient for employees to manage their GPF accounts from anywhere and at any time.

3. Partial withdrawal rules

The rules for partial withdrawal of GPF have also been revised for 2021-22. Government employees are now allowed to withdraw up to 75% of their total GPF balance in case of certain emergencies, such as illness, education, house construction, or marriage. This will benefit employees who need to meet urgent and unforeseen expenses while still keeping their GPF balance intact.

4. Loan against GPF balance

Government employees can avail loans against their GPF balance, subject to certain terms and conditions. The government has revised the rules for loans against GPF balances for 2021-22, allowing employees to take loans up to 12 months or three-fourths of their GPF balance, whichever is lesser. This is a good option for employees who need to fund large expenses without resorting to expensive loans from outside sources.

5. Tax benefits

The GPF scheme also offers tax benefits to government employees. Contributions made towards the GPF account are eligible for tax deductions under section 80C of the Income Tax Act, up to a maximum limit of Rs. 1.5 lakhs. Additionally, the interest earned on GPF balances is tax-exempt, making it a good option for employees looking to save tax.

In conclusion, with the revised rules and increased interest rates, the GPF scheme is a great option for government employees looking to save their money and earn good returns. However, it’s important to stay informed about the changes in rules and regulations to make the most of the scheme. With the digitization of GPF accounts and revised rules for withdrawal and loans, government employees can now manage their GPF accounts with ease and convenience.

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