EPF Claim Rejected: Many individuals had faced a situation when their EPF claim got rejected by the authorities. Most of them are unaware of the fact that EPF claims can get rejected due to specific reasons, so when they face such situations, they get tensed. In this article, we have tried to bring in some common reasons that might get your EPF claim cancelled; this article will help individuals to avoid such things while applying for the EPF. Below we have listed some common reasons along with the solutions that might help to solve them.
Name Not Printed/Different in Cheque
According to the new rules issued by the government, a person is required to upload a copy of the cheque or passbook while applying for PF withdrawal. This is meant for cross-checking whether the submitted bank details match the details of the person’s bank account or not. If the bank details do not, then the authorities have all the rights to reject the PF withdrawal.
Solution: The person who is applying for PF withdrawal must always upload the cheque and passbook, which have his/her name as the account holder. This will prevent his/her PF withdrawal from getting rejected.
EPF Claim rejected as the Person’s name in UAN account differs from bank record
The authorities might reject one’s PF withdrawal claim if his/her name, which is mentioned in the bank account details, doesn’t match with the name in the UAN account.
Solution: One has to make sure that his/her first name, middle name and last name are the same in both the UAN account and the bank account. If they differ, then he/she should submit an application to the bank to update the name. Once the name in the bank details is updated, the person should apply for a new checkbook and passbook so to upload it on the website after getting it approved from the employer.
Number of Digits in Bank Account Number
People make mistakes while putting up the bank account number; these mistakes lead to the rejection of the PF withdrawal claim.
Almost every bank account number starts with the number zero, but people ignore it while filling up the bank details, thus causing rejection of their claim. This type of mistake happens mostly with people having an account in SBI because, in SBI, the passbook shows an 11 digit account number, but internet banking shows a 17 digit account number.
Solution: One should remember to give all the numbers, including the zeros showing in his/her bank details while he/she is filling up the form for PF withdrawal. So in the case of SBI, one should give the 17 digit account number. Update your bank details in the KYC form and get it approved by the employer.
EPF Claim Rejected as Bank Details are Incorrect
The issue of incorrect bank details occurs when the IFSC code of different bank branches changes due to a merge between two or more banks. Another reason is when a person uses a joint account in the PF KYC. The PF authorities might consider the bank details if the person’s joint account is with his/her spouse. However, in the case of friends, relatives, etc., the PF authorities have all the rights to reject the claim.
Solution: In order to avoid this problem, one can redo the bank KYC when there is any change in the IFSC code and get it approved by the employer. After updating the bank details, the person can consider applying for the PF withdrawal.
EPF is Settled But Returned
In such cases, the PF authorities must have approved the claim, and the PF department might have already initiated the settlement of a person’s PF claim. Still, due to incorrect bank details or wrong IFSC code, the amount received by the bank from the PF department is sent back to the sender.
To fix this problem, one can either rectify the bank details by updating the KYC or apply for the PF withdrawal again. After updating the KYC, one needs to upload an application to the PF department, informing them that he/she has updated the KYC details and requesting them to re-authorize his/her details.
EPF Claim Rejected due to DOJ/DOL Reasons
This error occurs when a person’s employer makes a mistake while recording the date of his/her joining or leaving the company. This might cause the person to miss out on filling one month’s tax return, thus giving all the authority to the PF department to reject the person’s PF withdrawal claim.
Solution: One can fix this issue by filling up a joint declaration form along with making the new employer correct the mistakes he/she had made while recording the date of joining or the old employer to correct the mistakes he/she had made while recording the date of leaving.
Insufficient service rejection comes into the scene when a person has not served his/her service for a minimum duration of 6 months. In this case, the person is eligible to apply for EPF withdrawal by using Form 19 but is not eligible to apply for EPS withdrawal using Form 10C.
Solution: People must remember the fact that if they are keen to withdraw the EPS, then they must consider providing service for the last six months because EPS withdrawal can only be done after the completion of six months of service and not before that.
Multiple PF Numbers
If a person makes a withdrawal from his/her latest PF number and makes a transfer from his/her old PF number, then the person might still have some amount left in his/her PF number. However, the claim gets rejected by the PF authorities. The reason for rejection stated by them is the person’s account is already settled in the past.
Solution: One should constantly update and check the passbook in order to prevent discrepancy. If a person finds any discrepancy, then he/she must immediately contact his/her employer without wasting any time so that the employer can give you an appropriate reason for why your PF contributions are not getting credited.