Sushmita Goswami | Apr 5, 2022 |
After increasing dearness allowance, Relief on PF interest, know how much interest you will get now
There is good news for the employees doing Sarkari Naukri. With the increase in Dearness Allowance, DA, the interest rate of his General Provident Fund (GPF) has been released from April to June 2022. It is a matter of relief that it has been retained at 7.1 percent. That is, between April and June, they will get 7.1 percent interest on their GPF account. There is no deduction in this. Explain that the GPF account is a provident fund, in which there is no contribution from the government or the employer. Only employees contribute to this.
According to Ashish Vachhani, Joint Secretary in the Government of India, during the year 2022-2023, the interest rate on the total deposits of the consumers of the General Provident Fund and other funds will be 7.1% from April 1, 2022, to June 30, 2022. This rate is applicable from April 1, 2022. This will be reviewed again in July and the new rate of interest for the next quarter will be released later.
According to tax expert Manish Kumar Gupta, there is another important news for government employees that now they will come under the tax net on contributions above Rs 5 lakh in the GPF account. CBDT has implemented new income tax rules from 1st April 2022. In this, contribution to Employee Provident Fund and GPF accounts has been capped. Employees will come under the purview of tax if the contribution in the EPF account exceeds Rs 2.5 lakh in a business year and the amount is deducted above Rs 5 lakh in the GPF account. That is, income tax will be charged on the interest earned on the above amount.
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