Link PAN with Bank for Tax Refunds
The Income Tax Department issues tax refunds to all the individuals and corporate entities that have paid higher income taxes as compared to their actual tax liability. The Income Tax Department will be only issuing e-refunds from March 1, 2019, onwards in the bank accounts of “only” those individuals who have linked their respective bank account number with the Permanent Account Number (PAN) card.
- The income tax refunds will be credited only to bank accounts (savings/current/cash/OD) which are linked to PAN w.e.f. March 1, 2019. If your PAN is not yet linked with your bank account, you must provide the details of the same to your bank branch to get an income tax refund. If your bank is integrated with the e-filing portal, pre-validation can be done directly through EVC (Electronic Verification Code) and net-banking route.
- On the other hand, if your bank account is not integrated with the e-filing portal, then the income tax department will validate the bank account itself from the details filled up by you, states an advertisement by the department in The Times of India dated February 26, 2019.
- Till now, the department used to issue refunds to taxpayers either in their bank accounts or through account payee cheques, in a case-to-case basis depending on the category of taxpayers.
- The communication added taxpayers can check if their bank account is linked with their PAN by logging onto the e-filing website of the department: https://www.incometaxindiaefiling.gov.in
- Who have not linked their PAN with their bank account should provide it to their home bank branch and also validate this over the e-filing website of the I-T Department.
- Recently, the linking of the PAN with the Aadhaar-PAN has been made “mandatory” for those filing an Income Tax Return (ITR) and this procedure has to be “completed” by March 31 this year. As per data updated till early this month, the I-T Department has so far issued 42 crore PANs, of which 23 crore have been linked with Aadhaar. While Aadhaar is issued by the Unique Identification Authority of India (UIDAI) to a resident of India, PAN is a 10-digit alphanumeric number allotted by the IT Department to a person, firm or entity.
Here’s how you can pre-validate your bank account to receive e-refund from the income tax department.
Step 1: Go to e-filing portal www.incometaxindiaefiling.gov.in
Step 2: Click on login here and enter your details to login. User ID is your PAN.
Step 3: Once logged in, click on profile settings and click on pre-validate your bank account.
Step 4: Enter your bank details i.e. bank account number, IFSC, bank name, mobile number and email id. Remember your PAN, name, mobile number and email id must match with the details as given in your bank account to successfully pre-validate your bank account.
Step 5: Click on pre-validate.
The income tax department will show you a message on your screen: Your request for pre-validating bank account is submitted. Status if your request will be sent to your registered email id and mobile number.
Alternatively, you can once again go to ‘pre-validate your bank account’ option under ‘profile settings’ option to check the status of the same.
You can add or remove the bank account only after 24 hours. If the bank account validation is failed at bank, the same will be shown on the website.
Another thing to remember that no change of mobile number or email as mentioned will be permissible without revalidation of the bank.
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