Provident fund (PF) is not just a retirement fund, but a career transition or emergency for employees who get salary in India. But, sometimes there is a lot of difficulty in withdrawing PF money in times of need.
According to Employees’ Provident Fund Organization (EPFO), the process of extracting PF is quite easy. You just fill the correct form, keep the KYC update and the money should be available in 7–15 working days. But, usually the process is not so easy. Many times people should wait for months.
Why is PF’s delay in withdrawing?
According to the EPF Scheme, Para 69 of 1952, all the documents should be found on time when correct. But in reality many people have to wait for months. Reason? Even a slight mistake in the records of Aadhaar, PAN, bank account or employer can stop the entire process.
According to the expert, if there is a disturbance in Aadhaar, bank details or exit date, the claim process does not increase. The most common problem is that the employer would not have updated exit date on the EPFO portal.
Confusion is done in filling the form
There are three main forms to remove PF:
- Form 19 – PF to withdraw money
- Form 10C – If service is less than 10 years and pension has to be removed
- Form 10D – If the service is more than 10 years and a monthly pension is required
- Form 15G/15h – TDS for discount
Many people often do not know whether they have to remove the lump or start pension. Many times people above 60 years fill Form 10C, while they should fill 10D. Even though EPFO has now launched the Composite Claim Form, many claims can be in the same form. But the confusion still remains, especially for those who are not expert in financial documentation.
Technical problems and the burden of compliance
To claim PF you have to fulfill some important conditions:
- KYC (Aadhaar, PAN, Bank Account) should be fulfilled
- E-nomination should be recorded (now mandatory)
- Employer has updated exit date on EPFO portal
If no one of these has happened, then the claim cannot file. Apart from this, problems like technical problems- IFSC Mistake, File Format Err, Aadhaar Authentication Fail are common on the portal. Especially, when the digital signature of the employer is necessary, and they are reluctant, the process may be stuck for a long time.
In such a situation, filling the form is not enough. It is also necessary to add the correct documents, take an assession from the employer and choose the form according to the correct category. Many people fill the wrong form, some do not know that their UAN is not active, or the bank details have not been verified.
What to do if PF claim gets stuck?
- Enter a complaint on EPFO Grivens portal
- Contact Regional PF Commissioner
- If you are inuce, follow the legal path, such as the writ petition in the High Court
Pay attention to these things before claiming PF
- Check KYC and E-Nomination status on EPFO portal
- Confirm the employer that the exit date is updated
- Verify the details of Aadhaar, PAN and Bank Accounts
- Choose Composite Claim Form if you do not understand the form
- Fill 15G/15h if you are eligible for TDS