Document drama galore: Top reasons PF claims get rejected-and how to fix it
New Delhi, Apr 14, 2025
Despite a clear process on paper, PF claimants often face delays, confusion, and technical snags that can stretch out the timeline for receiving their hard-earned savings.
For salaried employees in India, the Provident Fund (PF) is not just a mandatory retirement savings vehicle—it’s a financial cushion meant to support them during career transitions, emergencies, or retirement. The process for withdrawing PF savings, as outlined by the Employees’ Provident Fund Organisation (EPFO), seems straightforward: submit the right forms, ensure KYC is complete, and receive your funds within 7–15 working days. But in reality, things are rarely so simple.
A system riddled with delays
Although Paragraph 69 of the Employees’ Provident Funds Scheme, 1952 mandates timely disbursal post-verification, countless applicants experience weeks—if not months—of delay. Why? Because even a minor mismatch in Aadhaar, PAN, bank account number, or employer records can derail the process entirely.
"The typical timeline for receiving Provident Fund (PF) withdrawal proceeds, upon successful submission of a claim, ranges between seven to fifteen working days, provided all Know Your Customer (KYC) credentials are duly verified and the employer has confirmed the exit date. However, in practice, delays are frequently encountered due to discrepancies in the employee’s Aadhaar, bank account details, or the employer’s failure to update the exit status on the Employees’ Provident Fund Organisation (EPFO) portal," said Sonam Chandwani, Managing Partner, K S Legal Associates.
One of the most common roadblocks is the employer’s failure to update the employee’s exit date on the EPFO portal—a critical step without which the system simply won’t allow a claim to proceed. For many, it’s a frustrating waiting game with no accountability and little recourse, except to raise a complaint through the EPFO’s grievance redressal mechanism or approach the Regional Provident Fund Commissioner.
Forms, confusion, and eligibility puzzles
Another major stumbling block is the confusion over the correct forms to be used. The three primary ones are:
Form 19: For final PF settlement.
Form 10C: For pension withdrawal (if service is less than 10 years).
Form 10D: For monthly pension benefits (if service is 10 years or more).
Form 15G/15H: For TDS exemption, depending on age and income.
"The primary forms required for withdrawal of the Provident Fund include Form 19 for final PF settlement, Form 10C for withdrawal benefit under the Employees’ Pension Scheme (EPS), and Form 15G or 15H for exemption from Tax Deducted at Source (TDS) where applicable. For claimants above sixty years of age, the procedural route varies with respect to pension entitlement; Form 10C ceases to apply and Form 10D becomes applicable where monthly pension benefits under the Employees’ Pension Scheme, 1995 are sought. It is imperative to distinguish between withdrawal of corpus under the PF Scheme and disbursal of pension under the EPS, as the procedural and documentary requirements differ accordingly," said Chandwani.
Many applicants struggle to figure out whether they’re eligible for a lump sum or monthly pension, and whether they need Form 10C or Form 10D. For retirees aged 60 and above, the confusion is compounded, though the EPFO now uses a Composite Claim Form that consolidates multiple withdrawal options into a single form.
" Moreover, confusion persists in relation to the applicability of Form 15G or 15H for TDS exemption, especially in the absence of adequate explanation on the EPFO portal," said Chandwani.
Despite this simplification, the procedural ambiguity remains high, especially for those unfamiliar with legal and financial documentation. A lack of guidance, either from the employer or the EPFO, only adds to the frustration.
Compliance burdens and technical glitches
To submit a valid claim, employees must fulfill multiple compliance requirements: KYC linkage, Aadhaar-PAN validation, e-nomination, and employer confirmation of exit. Any lapse—like a missing e-nomination—can prevent the claim from being filed altogether. Notably, e-nomination is now mandatory, and skipping it disables the claim submission option on the EPFO portal.
Then there are technical difficulties. Portal errors, IFSC code mismatches, file format issues, and failed Aadhaar authentication are all too common. And where employer digital signature verification is required, delays are routine—especially if the employer is unresponsive or lacks administrative support.
"The basic compliance requirements for making claims for PF contributions are that (i) employees need to fill out appropriate forms, (ii) compile the requisite documentation (generally relating to proof of identification / bank statements, depending upon the form), and (iii) submit the forms and documents to the appropriate authorities. However, certain forms require additional steps to be followed such as the employer attesting the claim form, based on the nature of withdrawals being sought. Additionally, compliance requirements differ based on the circumstances, category, and eligibility of the employee making the claim for the withdrawal of contributions," said Vaibhav Bhardwaj, Partner at Khaitan & Co.
Real people, real problems
Many applicants report submitting forms only to find their claims rejected for avoidable reasons—incorrect form type, inactive UAN, or unverified bank details. Worse still, some don't even know their employer has not completed the exit process, or that a slight name mismatch between Aadhaar and EPFO records can cause the entire process to stall.
“There’s no clear communication,” said Amish Gupta, a Delhi-based IT professional. “I submitted everything correctly, but it took me nearly two months to get my funds because the system showed my date of exit was missing—something only my ex-employer could fix.”
Due to information gaps on the process to be followed for making withdrawals of PF contributions, employees face several different challenges while doing so.
"Some examples of these challenges include: (i) filling up the wrong form; (ii) applying for the withdrawal without meeting the eligibility criteria; (iii) being unable to procure the employer’s attestation, wherever needed, for the application form; (iv) having discrepancies in the information being filled out in the form, such as by filling out the incorrect date of birth; and (v) being unable to find the correct forms on the website while making an online application," said Bhardwaj.
What You Can Do
If your claim is delayed or rejected, you can:
Raise a grievance via EPFO’s grievance portal.
Reach out to the Regional PF Commissioner.
Escalate through legal channels, including filing a writ petition in court in extreme cases.
Withdrawing your Provident Fund in India can be a smooth process—but only if every procedural box is ticked perfectly. In a system where even a small data mismatch can derail a claim, employees must be vigilant, informed, and persistent. Until the EPFO makes its processes more user-friendly and responsive, withdrawing your own savings may continue to feel like a bureaucratic maze.
Quick Tips Before You File a PF Withdrawal Claim:
Verify your KYC and e-nomination status on the EPFO portal.
Confirm that your exit date is updated by your employer.
Ensure your bank details, Aadhaar, and PAN are correctly linked.
Use the Composite Claim Form if unsure about which individual form to fill.
Download a Form 15G/15H if you're eligible for TDS exemption.
[The Business Standard]
