Clarification – Conversion of Interest Free GP Fund Account into Interest Applied Account dt 19.11.2020
OFFICE MEMORANDUM
Subject: Conversion of Interest Free GP Fund
Please refer to your office letter No. Admn-I/AO/40/28162 dated 02.06.20220 on the subject cited above.
- In the light of the Accountant General Pakistan Revenues, Islamabad letter No. EFC-II/GPF/CO-ORD/D/2019-20/4684 dated 19.11.2020 (copy attached), the GP Fund account can be made interest free from the very beginning of the service and the interest accumulated in his account shall be deposited into Govt. Treasury. The matter may be dealt accordingly please.
Kindly refer to your letter No. AGPR/SOL/1-213-11/Admn/CD/138, dated 21-07-202 on the subject cited above.
2. The above referred letter regarding the clarification of maintaining Interest Free GP Fund Account from the very beginning of the service and the recovery of interest already drawn during GP Fund advances in R/O Hafiz Muhammad Danish. Rule 14(5) states as:
“Interest shall not be credited to the account of a Muslim subscriber if he informs the Account Officer that he does not wish to receive it; but if he subsequently asks for interest, it shall be credited with effect from the first day of the year in which he asks for it.”
& Government decision:
“A question has been raised as to what course should be adopted in the case of a subscribe who intimates his intention to forego interest already accrued on his deposits in the Provided Fund. As the relevant rules did not provide for any such contingency, the matter has been considered by the Government of Pakistan and it has been decided that there is no objection to the interest in such cases being withheld and credited to Government revenues, on the written intimation of the subscriber concerned.”
In the light of above rule and government decision, a subscriber can maintain an interest free account from the very beginning of the service and the interest accumulated in his account shall be deposited in the Government Treasury.
3. In the view of above, if the subscriber requests for interest free GP Fund A/c of above stated rule and government decision, his GP Fund A/c can be made interest free the date of appointment by depositing the accrued interest amount in the government treasury.
