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How To Avoid EPF Claim Rejection

Employees can withdraw funds from the employees’ provident fund (EPF) while leaving the organisation under certain conditions. Follow these points to avoid claim rejection.

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Outlook Money
December 6, 2023
EPF Claim Rejection

EPF Claim Rejection

Companies must provide employees with the Employees’ Provident Fund (EPF) facility if they have at least 20 individuals under their payroll. EPF is a social security scheme that provides tax benefits, pensions, and insurance and helps create a retirement corpus.

After retirement, one can withdraw the funds in a lump sum. However, EPF also allows premature withdrawals if the member needs money for children’s education, marriage of self, son, daughter, brother, and sister, medical emergencies, house construction, renovation, etc. EPF Claim Rejection also happens. Here are some common reasons for EPF claim rejection.

Incomplete or Mismatch In Information

An EPF claim can be rejected if the member provides incomplete information in the claim form or if it doesn’t match the records with the Employees’ Provident Fund Organisation (EPFO). Name or age mismatch and missing details of husband or father are primary reasons for claim rejections. The claim will be rejected if the date of birth doesn’t match the records in EPFO. So, to avoid claim rejection, it is crucial to provide an accurate name, date of birth, and other personal details.

Incomplete KYC and Bank Details

Claims can be rejected if Know-Your-Customer (KYC) is incomplete or unverified. It will also get dismissed if bank details are incomplete or inaccurate. For example, EPFO may also reject a claim if the bank or the account holders’ details in a joint account do not match. Also, the claim may get rejected if the bank IFSC code doesn’t match.

Date of Joining Work and Exit

If the date of joining or leaving a job is missing or inaccurate in the form, the claim may get rejected.

UAN Not Linked With Aadhar

If the Unique Account Number (UAN) is not linked with Aadhar, the EPFO can reject the claim.

Wrong Claim Form

If you fill out the wrong form, the claim may get rejected. Furthermore, sometimes, details given by the employer are incomplete. As a result, claims get rejected. The EPF claims process must follow the EPF regulations and eligibility criteria. If there is a compliance failure, the claim will be rejected.

How To Avoid Claim Rejection?

To avoid claim rejection by the EPFO, ensure that KYC is complete and accurate. For that, one should upload the original copy of the documents and not photocopies. Complete the KYC formalities beforehand to avoid rejection.

If there is a mismatch in the name in the Aadhar and EPFO portals, the claimant must submit a joint declaration form to the EPFO after filling it. In case of any discrepancy in Aadhar details, one should get it corrected from any Aadhaar Seva Kendra. When you withdraw EPF funds, you are required to upload a copy of the cheque or passbook. The cheque should have your name printed on it, or the first page must be uploaded in case of a passbook. While doing so, ensure the bank details are the same on the EPF portal. It is also necessary to submit self-attested documents, and do not forget to check all the documents for accuracy before submitting them.

For any mistake or discrepancy, the EPF member must log in to the EPFO member portal, update the bank and KYC details, submit the necessary documents, and resubmit the claim form. Also, after making the claim, one may keep track and follow up with the EPF office so that if there is any issue, it can be rectified early to avoid rejection.

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