Nitish government has taken a big decision regarding the Provident Fund. Now the government will return the money of those who contribute more to the Provident Fund. Government employees can contribute a maximum of Rs 5 lakh in a year. In 2023-24, the amount contributed more than this limit will be refunded without interest. Finance Department Secretary (Expenditure) Deepak Anand has issued a notification related to this.
State Bureau, Patna. Bihar Government Provident Fund
The surplus amount will be refunded to the government servants who have contributed more than Rs 5 lakh in the financial year 2023-24. They will not get any interest on it. The government has made it clear that contribution in excess of the maximum limit in the General Provident Fund will not be acceptable.The government servants who have contributed more than five lakhs will be entitled to the interest payable on the Provident Fund i.e. till the financial year 2022-23.
Contribution up to Rs 5 lakh in 1 year
Deepak Anand, Secretary (Expenditure), Finance Department has issued a notification related to this. According to the amendment, if a contributor achieves the maximum limit prescribed for provident fund contribution, then the provision of deduction of six percent monthly from the basic salary in this fund will be considered relaxed. It is noteworthy that a maximum of Rs 5 lakh can be contributed to the General Provident Fund in a year.
This limit has been fixed with effect from 2023-24. For this, Bihar General Provident Fund Rules-1948 have been amended. This provision will be relaxed only in those cases where the contribution is reaching the maximum limit.
Many such cases had come before the government
Due to the high interest rate on the Provident Fund and its calculation on a compounded basis, government servants often contribute more than the upper limit. That contribution is not beneficial for the government treasury because the receipts from the bonds etc. in which the government invests are not equal to the liability on the Provident Fund. Many cases of contribution in excess of the upper limit in the Provident Fund had come to the notice of the government.
In such a situation, after consultation with the Central Government, the Bihar Government has decided that contribution of more than five lakhs in the Provident Fund will not be acceptable.