A PAN card is a permanent account number provided by the Income Tax department to every individual whos salaried or not. PAN card is mandatory for conducting all your financial transactions.
The IT department has made it mandatory to link your bank account with PAN. The main reason for this is that your income tax refunds will be credited directly to your bank account. If your primary bank account is not added to the PAN account, then you will not receive any refunds. You can add any type of account to PAN – savings, current, checking, cash, or overdraft. Earlier, you could get refund cheques sent to your registered residential address, but that option has now been taken away.
How to Link PAN Card with Bank Account Online (Through Internet Banking)
Step 1: Log in to your bank’s internet banking account.
Step 2: Enter your User ID and Password.
Step 3: Go to your profile. Look for menu options such as Service Requests, Services, or PAN Registration. Click on the relevant option.
Step 4: Select PAN Card Updation, Link Your PAN, Update PAN, or other similar relevant options.
Step 5: Enter your PAN Card number. You might also have to enter your date of birth as on the PAN Card and your registered e-mail ID.
Once you input the correct details, your PAN and bank account will get linked in 2 to 7 working days.
PAN Card is a Permanent Account Number which is being provided by the Income Tax Department to every entity whose income is a taxable income. PAN Card is a compulsory Government document which is needed in most of the financial transactions. The Income Tax Department made it mandatory to link bank account with PAN. The main reason for linking a PAN card with a bank account is that in case of income tax refunds, it will be credited easily to the bank account.
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Linking of PAN card with Saving accounts is a compulsion
- The Central Board of Direct Taxes made some changes regarding the rules of Income Tax recently. It has a mandate for all banks of India to link PAN number or Form 60(If PAN is not available) by February 28, 2017, to all the existing bank accounts.
- Basic saving bank deposit accounts are excluded from complying with this rule.
- RBI had put restrictions on certain transactions where Form 60 or PAN was not available. A circular was issued on December 15, 2016, which states that no debit transactions, no transfer, and other banking services will be permitted to those who fail to comply with KYC rules.
- Form 60 is easily available from any bank branch or post office or people can download them from scheduled banks or websites of a post office.
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