Know How To Avoid Your EPF Claim Rejection

Every day lakhs of EPF members file their claim but around 25% of the claims are rejected for various reasons. Many of the claims are rejected multiple times because the requirements for claims settlements are not completed either by the members or by the employers or sometimes by EPFO itself. 

As this frequent rejection makes the members feel harassed and frustrated with the system, its very important to know the reasons for the claims rejection and their solutions which are discussed in the following para:

1. When member’s name is not printed on cancelled cheque or photocopy of bank passbook is not attested either by the Bank officer or by the Employer: – 
   • In order to check the bank details of member, it is mandatory for a member to submit either cancelled cheque or attested copy of bank passbook by uploading the scanned copy in online claim or submitting a copy in physical claim. The member should ensure that the cheque/passbook should mention member name to identify his/her account and scanned copy of cheque/passbook is clear and legible. 
   • In case the member submits passbook, it should be attested either by the employer or by the issuing bank authorities.
   • The member may also check the IFSC Code of the bank account seeded in KYC. Any difference in KYC may not result into rejection of claim but may result in refusal of credit of money by the concerned bank & return of the money from banks to EPFO. This will cause further delay in getting the PF amount in the bank account of the member.

2. In case Pan card/ Form 15-G not submitted by the member: –

• As per the Scheme & extant rules, for financial transactions member KYC is required to be completed. The KYC include seeding of Aadhaar, Pan card & Bank Account.
  • Further As per the EPF scheme, members having PF contribution for less than five years (60 months) are not exempted from TDS and therefore should check if their Pan details are linked before submission of claim.
  • In addition, members may also check if they are eligible for exemption from TDS based on submission of Form 15G. An incomplete 15G or ineligibility also may cause rejection of claim. If in this situation the claim is passed by EPFO then TDS will be deducted at a very high rate (presently @ 35.88 %).

3. In case member has already availed advance for permissible times: –

A member is eligible for various advances to obtain money for his/her needs. The amount and frequency to avail benefit are determined by the EPF Scheme. Therefore, the member may check their eligibility and the benefit by checking EPF scheme to avoid the rejection of his claim and to avail benefit as per his need. 

4. In case claim is already settled from member’s account: –

A member may have multiple PF membership account due to change of employment/multiple employment over a period of time. Therefore, he should check that he submits claim from account from which they have not taken the complete withdrawal or which is not transferred to his new account.

5. Member’s details mismatch: –

Every member of EPFO can access their account through “Member e-Sewa Portal” on the website of EPFO. The member should check his details like Name, Date of Birth, Father’s name etc. through this portal. In case any of the details are different from details in his Aadhaar, he should first get his details corrected either through online or offline application for member details correction. Once the details are correct only then member should initiate claim to avoid rejection of claim due to the above reason.

6. Not eligible for withdrawal benefit: –

Any benefit which is available to EPF member has its criteria and conditions. Therefore, the member may check his eligibility based on fulfilment of those conditions before submitting claim. For example, any member having duration of service less than 06 months is not eligible for withdrawal benefit of pension contribution. Similarly, before completion of 5 years of membership one cannot take advance for purchase or building a house. 

Therefore it’s very important for EPF members to take care of the above points before submitting their claim forms to avoid unnecessary rejection of the claims and maximise the chance of its settlement.

–By  Mohan S.