GPF Full Form

GPF full form is the General Provident Fund. It is a type of PPF account that is available only for government employees. In this fund, all the government employees contribute a certain percentage of their salary to the account. The accumulated amount throughout the employment term is paid to the employee during retirement. The employee can also make partial withdrawals after 15 years of service or within 10 years of retirement.  

The interest rate on GPF is set every quarter and stood at 7.1% for Q1, 2020-21 (April - June 2021). A government employee can also enjoy tax benefits for up to Rs. 1.5 lakhs under Section 80C of the income tax act. 

What is GPF Fund Full Name?

GPF fund full name is General Provident Fund.

GPF Full Name and Eligibility

GPF full form is the General Provident Fund. Anyone who fulfils the following criteria is eligible for the GPF account.

• All permanent government employees who are residents of India.

• All temporary government employees after continuous service of one year.

• All re-employed retired government pensioners.

•  All government employees working in the establishment are covered by the EPF act, 1932.

Note: The government employees joining after 2004 are not eligible for a GPF account. They are covered by the National Pension Scheme ( Central Government) and National Pension Scheme ( State Government) as the case may be.

How GPF Works?

GPF is a savings tool for government employees. In this account, the employee is supposed to contribute a certain part of his/her salary regularly for a certain amount of time. The amount accumulated in the GPF account of the employee is given to the employee at the time of retirement or superannuation. 

The GPF account holder also has to nominate a nominee for his/her account. The nominee will receive all the benefits or amounts if anything happens to the account holder.

The GPF account also has an option known as GPF advance. It is a kind of interest-free loan from the GPF savings. It implies that an employee can borrow the amount from his GPF savings which are supposed to return in regular instalments. An employee is not entitled to pay any interest on the amount borrowed from his account.

GPF Subscription

• A subscriber can deposit monthly to the fund even during the suspension period.

• Provided that a subscriber may at his/her option, choose not to subscribe during leaves. 

• Providing further that subscribers on renewing after the completion of the period under suspension shall be allowed the option of paying in one single amount or instalment any amount not exceeding the maximum amount of arrear subscription permitted for that period.

• Subscription can be of any sum, so decided by the subscriber, not less than 6% of his emoluments and not more than his total emoluments.

• Amount of subscription may be decreased twice and increase once in a  year, But the amount of subscription that is fixed shall in no case falls below 6% and not more than his/he total emoluments.

GPF Withdrawal Conditions

• The withdrawal is not permitted more than once after every 6 months.

• One withdrawal is permitted for the same purpose.

• In one financial year, a subscriber is allowed to draw either the temporary advance or the partial final withdrawal after a gap of 6 months of withdrawal of anyone, so that there would be not two withdrawals in one financial year.

Final GPF Withdrawal From the Fund

Final withdrawal of accumulation to the account shall become payable to the government official;

• When a subscriber quit the service

• When a subscriber retires on superannuation.

• In case of death while in service.

Submission of Application for Final GPF Withdrawal

The application duly signed by the subscriber/claimant for the final GPF withdrawal of the balance at the credit should be given to the department at least one year before the retirement and it is further forwarded to Accountant General Office along with the required documents by the authority; who is authorized to sanction temporary advance/part final withdrawal to the subscriber.

Unauthorised GPF Subscription

Subscription more than the subscriber’s emoluments or less than 6 percent shall be treated as unauthorized subscription and the interest will not be earned on this amount. If the basic as of 31st March of each Accounting year is not mentioned in the schedule, the entire subscription during the year will also be treated as an unauthorized subscription and interest will not be earned on the said amount.

GPF Interest

The General Provident Fund(GP Fund Full Form) and other similar funds shall carry GPF interest rate at the rate of 7.1% w.e.f. April 1, 2021, to June 30, 2021.