What Is The Full Form Of GIS In Income Tax?
GIS full form in income tax is Group Insurance Scheme. This is a government program set up to provide life insurance for groups of public sector workers. In the case of death at work, the GIS ensures financial protection with life insurance and a lump-sum payment to the families of employees or retirement benefits in case an employee retires. The funds used for this insurance derive from the monthly salaries of the employees, it accumulates during the period worked and is released upon retirement or to the beneficiary of choice when an employee is not around anymore.
Eligibility and Subscription:
This insurance plan is open to all regular government workers. Monthly premiums are in the nature of a fixed deduction from the employees’ salaries every payroll period. This, of course, varies depending on the region and on the specific rules of the plan, but generally includes, on one hand, an insurance part, and on the other hand, a savings part.
Operational Details and Benefits:
Every month, a portion of the employee’s paycheck goes towards GIS. During the retirement period, the total amount saved and the interest amount are payable to the worker. In the event of the worker’s death before retirement, this money shall be payable to the nominee of the worker. These, however, may vary with the state within India and depend on which government department, for example, the sum one pays monthly, the coverage of insurance, and benefits in savings may be different from one state to another.