Link your PAN with your Bank Account to get your refund directly, swiftly and securely in your bank account.
In a new campaign started by Income Tax Department, emails are being sent to tax payers informing them that they will only issue e-refunds from 01.03.2019 to bank accounts (savings/current/cash/OD) which are linked with PAN. The Income Tax department wants you to link your PAN with your bank account and also validate it online
Until now, tax refunds were issued in two ways – either directly transferred to the bank accounts of taxpayers via ECS or through physical delivery of cheques on case to case basis. Now the department is doing away with the procedure of mailing tax refund cheques.
How to check if your bank account is linked to PAN:
To check if your bank account is linked with your PAN, login to e-filing portal, go to Profile setting and select Pre-validate your bank account. If not yet linked, provide your PAN details to your bank home branch. You must also pre-validate your bank account.
Step by Step Guide for Pre-Validate Bank Account
Step 1 – Login to your Income Tax Portal – https://www.incometaxindiaefiling.gov.in/home
Step 3 – If you do not have any pre-validated bank account then you will get an option to add your bank account details. Enter the following bank details to pre-validate your bank account like the Bank Account Number, Bank IFSC Code, Bank Name, Mobile Number, Email ID
Note: – You are required to enter only 10 digit Indian mobile number and email address which are registered with your bank, not the mobile number and email associated with your e-Filing login. The exact details mentioned on your bank account needs to be provided. If you are not aware of the mobile number and the email ID associated with your Bank account, kindly check with your Bank.
Step 4 – Click on Prevalidate button once you enter all the required information. A confirmation message will appear on the screen.
Note: – You will be only able to validate those bank accounts which have been linked using PAN number. If you have not submitted your PAN to the Bank, you need to first update your PAN with Bank and then follow this process.
Step 5 – If the details entered are correct (and matches with Bank records) then your account will get pre-validated instantly. To check the status of the request just navigate to Profile Settings and select Prevalidate Your Bank Account option: Validated– The bank account details are correct and validated. Validated and EVC enabled– The bank account details are validated and this bank account is enabled for EVC (Electronic Verification Code). So when you request EVC code you will get it on the mobile number registered with the bank for this account automatically. Validation Failed– PAN not linked with the bank account or the details entered are incorrect and does not match with Bank records.
Note: – You can remove or add multiple bank accounts. However, only one bank account can be used at a time for generating EVC code.
If your bank is integrated with the e-filing portal, pre-validation will be done directly through EVC and net banking route. If your bank is not integrated, then the income tax department will validate the bank account from the details provided by you.
If you find that your PAN is not linked, then provide your PAN details to your bank branch. Also, update your mobile number and the email Id in the Bank records.
Why does the IT department require to link PAN with the bank account? The IT department has made it mandatory for the taxpayers to link their PAN with a bank account to get the income tax refunds for the following reasons-
- You will be able to get the direct Income Tax Refund, and
- There will be a swift and secure process of income tax returns.
- Why you should Pre-Validate your Bank Account:
- Verify IT returns online: You can use it to generate EVC code for verifying your income tax return even if you do not have net banking activated on your bank account. The only requirement is to have access to mobile number and email registered with your bank.
- Quick Refunds: There are times when Income Tax Department withholds your refund and asks you to authenticate or verify your bank account by sending a cancelled cheque along with address proof before processing the high-value refund. If you have a pre-validated bank account then you do not have to worry about sending the cancelled cheque. This helps in faster processing of refunds with least hassels.
- Resetting your IT password: You can use the option for resetting the password using PAN and the bank account number using OTP to the mobile number linked to the bank account.
- Higher security of your account: You can activate a higher security option for logging into the e-Filing portal of Income Tax using PAN, password, and OTP send to your mobile number linked to the bank account.