Jammu, Dec 2: J&K Finance Department on Friday asked all departments to adhere to the ceiling of Rs five lakh on subscription to the General Provident Fund (GPF) in a financial year by the subscribers.
Instruction has been issued in consonance with the amendment in the Rules 7, 8 and 10 of the General Provident Fund (Central Service) Rules, 1960 fixing the threshold limit (at present Rs 5 lakh) vis-a-vis subscription to GPF during a financial year.
As per GPF-Rules, 1960, the amount of subscription should not be less than 6 percent of the emoluments and not more than total emoluments of the subscriber. However, there was no ceiling on the total amount of subscription of a subscriber into his GPF account in a financial year.
“However, Rules 7,8 & 10 of the General Provident Fund (Central Service) Rules, 1960 have now been amended vide Notification No. G.S.R.96 dated June 15, 2022, to the effect that the sum of the monthly subscription by a subscriber under the GPF during a financial year together with the amount of arrear subscriptions deposited in that financial year shall not exceed the threshold limit (at present Rs 5 lakh) referred to in sub clause (i) of clause (c) of the Explanation below Sub Rule (2) of Rule 9D of the Income Tax Rules, 1962 [as inserted vide Notification No G S R 604 (E) dated August 31, 2021 of Ministry of Finance, Department of Revenue (Central Board of Direct Taxes)],” read a circular issued by Director General (Codes) Finance Department.
“Accordingly, it is impressed upon all departments to adhere to these circular instructions regarding the limit of subscription (i.e., Rs 5 lakh) under GPF in a financial year by the subscribers,” DG Codes directed.