Is GPF Tax Free for Employee before or after Retirement

Is GPF tax free? The General Provident Fund Withdrawal is tax free, as these is a government scheme and individual may not charged any Taxation during their full lump sum amount withdrawal? On other hand, in recent taxation rules the government has changed the regulation on interest application for Provident funds. The General provident fund contribution, if exceeds more than 5 Lakhs INR, will be taxable under the income from other source slab.

As per Provident Fund act 1925, the amount may released from Provident Fund (GPF) Account from the employer or department will be tax free. A provident fund is a government scheme to benefit the employee after their retirement. In recent taxation rules, the full amount which received at the time of superannuation may taxed.

If the total amount contributed stands below the 5 Lakhs INR slab for the particular financial year. There may no interest charged and the same tax-free option continued. As interest accrued on the taxable GPF contribution will only taxable but not the entire amount being contributed.

GPF Full Form What is GPF

GPF tax free benefit will cover under tax exemption section 80C. These options of exemption include the amount contributed, interest earned on the total accumulation amount. The maturity of GPF reached at the time of superannuation, Resignation or suspension of employment.

  1. Is GPF Taxable after Retirement for an Employee

    The amount which is received from the General provident fund and comes under the Provident fund act, 1925 is fully exempted from Tax liability. The lump sum amount will be taken into consideration of tax free income with no taxation.

  2. Is 80C applicable for GPF?

    The General provident fund is a tax free savings cum retirement scheme, which accumulates the amount of contribution and interest earned on it. The total amount of GPF will be exempt from taxation under the section 80C.

  3. What is the limit of GPF contribution?

    The GPF contribution does start from minimum of 6 percent to maximum of 100 percent of the Basic pay from the Employee Salary. These percentages can be fixed by the subscriber during the start of a particular financial year.