 "interest rate")
That is the quickest progress within the firms’ curiosity bills in a minimum of three years
The Union Ministry of Finance has saved the rate of interest for the Normal Provident Fund (GPF) unchanged for the seventeenth quarter within the row at 7.1 per cent.
“It’s introduced normal data that throughout the yr 2024-2025, accumulations on the credit score of subscribers to the Normal Provident Fund and different related funds shall carry curiosity on the fee of seven.1 per cent (Seven level one p.c) wef. 1 October, 2024 to 31th December, 2024. This fee might be in drive wef 1 October, 2024,” Division of Financial Affairs (DEA), Ministry of Finance mentioned in a notification.
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This GPF rate of interest will apply to a number of funds, together with:
Normal provident fund (central companies)
Contributory provident fund
All India companies provident fund
State railway provident fund
Normal provident fund (protection companies)
Indian ordnance division provident fund
Indian ordnance factories workmen’s provident fund
Indian naval dockyard staff’ provident fund
Protection companies officers provident fund
Armed forces personnel provident fund
Distinction between Normal Provident Fund (GPF) and Staff’ Provident Fund (EPF)
What’s GPF?
The GPF is a long-term funding choice completely for presidency staff. They contribute a portion of their wage to the fund regularly. The federal government gives a hard and fast rate of interest on these contributions, which is reviewed quarterly by the Ministry of Finance. Upon retirement, staff obtain all the collected quantity, offering them with monetary safety after they go away service.
Eligibility: Completely for presidency staff
Contributions: Staff contribute a minimal of 6 p.c of wage; Can contribute as much as one hundred pc.
Rate of interest: It’s providing an rate of interest of seven.1 per cent every year.
Maturity: GPF matures upon the worker’s retirement.
Untimely withdrawal: Allowed solely upon leaving authorities service.
Advances: Curiosity-free loans out there for particular wants (eg, schooling, medical).
Tax advantages: GPF is a tax-free retirement-cum financial savings scheme. Due to this fact, the contributions, curiosity earned on it in addition to the returns from a GPF account are exempt from tax beneath Part 80C.
What’s EPF?
EPF is obtainable for workers of the non-public sector within the nation. Non-public companies with greater than 20 staff need to mandatorily deduct provident funds from the wage of staff.
Eligibility: Accessible for all salaried staff, together with non-public sector
Contributions: EPF, the corporate can deduct 12 per cent of the fundamental wage of an worker as EPF contribution and the employer must match the contribution. An worker has the choice to lift the voluntary contribution past 12 per cent.
Rate of interest: It’s providing an rate of interest of 8.25 per cent every year.
Maturity: At age 58 or upon retirement.
Untimely withdrawal: Allowed after two months of unemployment.
Advances: No advance facility; complete quantity is withdrawn at retirement.
Tax advantages: EPF accounts after 5 years of its creation are tax-exempt. Furthermore, contributions made in an EPF account yearly as much as Rs.1.5 lakh are eligible for tax exemptions beneath Part 80C of the Earnings Tax Act, 1961.
Not too long ago the federal government has saved the rates of interest unchanged for all small financial savings schemes for the October-December 2024 quarter.
The present rates of interest:
Sukanya Samriddhi Account Scheme: Rate of interest 8.2 p.c every year
Senior Citizen Financial savings Scheme (SCSS): Rate of interest 8.2 p.c
Public Provident Fund (PPF): Rate of interest 7.1 p.c
Nationwide Financial savings Certificates (NSC): Rate of interest 7.7 p.c every year
Submit Workplace Month-to-month Earnings Scheme (POMIS): Rate of interest 7.4 p.c every year
Mahila Samman Financial savings Certificates: Rate of interest 7.5 p.c every year
Submit Workplace Recurring Deposit Account: Rate of interest 6.7 p.c every year
First Revealed: Oct 07 2024 | 12:57 PM ist
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