There is great news for the employees. Actually the GPF limit has been fixed for them. Government orders have also been issued in this matter. Now the amount will be deducted from the GPF account only as per the issued order and rule instructions. Along with this, new instructions have also been issued for depositing the amount in this.
7th Pay Commission, Employees GPF: There is big news for the government employees of the state. Actually a big update has come out on his GPF. Government orders have been issued for this. At the same time, its limit has also been fixed. The amount will be kept in the account up to the maximum limit under the release limit.
UP government employees will no longer be able to deposit more than 5 lakhs annually in the general fund account. Issuing the mandate, the Uttar Pradesh government has clarified that the maximum limit for the amount of GPF account has been fixed at ₹ 5 lakh. State employees appointed before April 1, 2005 come under the purview of the old pension scheme. In such a situation, he has got the facility of GPF. The number of such employees is close to eight lakh in Uttar Pradesh.
These were the rules
At the same time, 10% deduction of the salary of the employees is deposited in their GPF account, but so far no maximum limit has been fixed for depositing the amount in GPF. Due to which a large number of state employees were getting GPF deducted to any extent. In fact, one of the reasons for deducting GPF to a greater extent was the interest rate of GPF being higher than the interest rate of fixed deposits of banks.
Rules Set
Not only this, the interest received on the amount deposited in GPF was also exempt from income tax till now. However, now the rule has been amended by the Income Tax Department. Under this, the interest received on depositing more than 5 lakhs annually in GPF has been brought under the ambit of income tax. Along with this, the department has also said that no person can deposit more than 5 lakhs in GPF account in a whole year.
Amendment in GPF Rules
For this, in the year 2022, the Central Government amended the GPF Rules for the employees. These changes were made by the Central Government after the changes made by the Income Tax Department in the Income Tax Rules, 1962. Now the State Government has amended the General Provident Fund Rules on the lines of the Central Government. Government orders have also been issued amending the Uttar Pradesh General Provident Fund Rules, 1985.
