The Finance Ministry has announced the interest rates on General Provident Fund and many similar schemes. Let us know what the new rates are.
The central government has announced interest rates on several such provident fund schemes including the General Provident Fund. The government has announced interest rates for the July to September quarter.
A statement issued by the Finance Ministry said, “It is announced for general information that during the year 2024-2025, deposits of members of the General Provident Fund and other similar funds will receive interest at the rate of 7.1 per cent from July 1, 2024 to September 30, 2024. This rate has become effective from July 1, 2024.
Interest rates also announced on these provident fund schemes
- 7.1 percent interest rate on Contributory Provident Fund.
- 7.1 percent interest rate on All India Service Provident Fund.
- 7.1 percent interest rate on State Railway Provident Fund.
- 7.1 percent interest rate for General Provident Fund Scheme (Military Service).
- 7.1 percent interest rate on Indian Ordnance Department Provident Fund.
- Let us tell you that the interest rates on all these schemes have been announced for the July to September quarter.
What is the General Provident Fund Scheme?
Let us tell you that the General Provident Fund is a type of provident fund scheme, under which only government employees can contribute. All government employees eligible for this scheme can invest a part of their salary in it, which the employee gets together after retirement. Let us tell you that the Finance Ministry revises the interest rates of the General Provident Fund Scheme and other similar schemes every quarter.
Will interest be available on contributions of more than Rs 5 lakh?
The Pension and Pensioners Welfare Department has issued an order on May 5, 2024 clarifying that interest will be paid under income tax on contributions of more than Rs 5 lakh under the General Provident Fund Scheme. The department said that the decision has been taken after discussions on this issue with the Finance Ministry.
