InvestorQ : How important is it for me to link my PAN with my bank accounts? How do I check if my bank account is linked with PAN or not?
Priyanka Singh made post

How important is it for me to link my PAN with my bank accounts? How do I check if my bank account is linked with PAN or not?

Answer
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Swapnil Sarang answered.
1 year ago


The Income Tax Department has made it mandatory to link one’s bank account with his/her PAN card in order to receive the income tax refunds. In a statement, the Income Tax Department said that it doesn’t matter what kind of a bank account one has- savings, current or overdraft, but the account must be linked with PAN in order to receive e-refunds.
Income tax refunds are paid out to those individuals whose tax deducted at source (TDS) has been cut excessively vis-à-vis the investments made. An individual’s tax is cut from his/her salary in the form of TDS. This is the tax amount the individual’s employer cuts before paying the individual his/her salary and pays it to the government.
Depending on the investment declarations provided by the individual, the company calculates the individual’s tax liability and accordingly deducts TDS every month before paying the individual his/her salary. An individual could make more investments over the course of the year and hence, his/her tax liability could decrease. In such a situation, when the individual avails more deductions, then the excess TDS amount, that was deducted from his/her salary, is refunded to him/her via income tax refund.
Thus, in order to get this income tax refund, it is now imperative that individuals link their bank accounts with PAN details.
How to check whether your bank account is linked with PAN or not:
- Log in to the income tax-filing portal with your user ID and password
- Go to profile setting and find the option to pre-validate your bank account
- Here you can enter your bank account name, account number and IFSC code, if its not done already
- If your bank is already integrated with the income tax e-filing portal, then this validation would already be done via EVC or net banking route
- Alternatively, if your bank doesn’t have your PAN details, then you can visit any of the nearest branch and ask them to update it at the earliest.


user profile image
Swapnil Sarang answered.
1 year ago


The Income Tax Department has made it mandatory to link one’s bank account with his/her PAN card in order to receive the income tax refunds. In a statement, the Income Tax Department said that it doesn’t matter what kind of a bank account one has- savings, current or overdraft, but the account must be linked with PAN in order to receive e-refunds.
Income tax refunds are paid out to those individuals whose tax deducted at source (TDS) has been cut excessively vis-à-vis the investments made. An individual’s tax is cut from his/her salary in the form of TDS. This is the tax amount the individual’s employer cuts before paying the individual his/her salary and pays it to the government.
Depending on the investment declarations provided by the individual, the company calculates the individual’s tax liability and accordingly deducts TDS every month before paying the individual his/her salary. An individual could make more investments over the course of the year and hence, his/her tax liability could decrease. In such a situation, when the individual avails more deductions, then the excess TDS amount, that was deducted from his/her salary, is refunded to him/her via income tax refund.
Thus, in order to get this income tax refund, it is now imperative that individuals link their bank accounts with PAN details.
How to check whether your bank account is linked with PAN or not:
- Log in to the income tax-filing portal with your user ID and password
- Go to profile setting and find the option to pre-validate your bank account
- Here you can enter your bank account name, account number and IFSC code, if its not done already
- If your bank is already integrated with the income tax e-filing portal, then this validation would already be done via EVC or net banking route
- Alternatively, if your bank doesn’t have your PAN details, then you can visit any of the nearest branch and ask them to update it at the earliest.