Question

Present one difference and one similarity between General Provident Fund (GPF) and Public Provident Fund (PPF). Specify one common benefit of both.

Answer 1

Similarity in GPF and PPF

a. Tax rebate 

b. Both are schemes of provident fund 

c. Both are long term policy

Difference in GPF and PPF 

a. GPF is compulsory for salaried employees Any adult can open PPF account 

b. Certain amount is deducted from salary every month in GPF. Deposits can be either in a lump sum or instalments, in PPF.