How to Link a PAN Card with a Bank Account
The IT department has made it mandatory to link your bank account with your PAN. The main reason for this is that your income tax refunds will be credited directly to your bank account.
PAN Card, i.e. permanent account number, is provided by the Income Tax (I-T) department to every income taxpayer. PAN Card is compulsory and is required for doing most financial transactions.
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.
Why is it Necessary to Link a PAN Card and a Bank Account?
Linking PAN card and bank account is important for various reasons. They are as listed below:
- Linking your bank account with your PAN is essential for income tax compliance. It ensures that your financial transactions are transparent and can be easily tracked for tax assessment purposes.
- For high-value transactions, linking your bank account with PAN is mandatory. This measure helps in monitoring and preventing potential tax evasion and other financial irregularities.
- When applying for a credit card, banks often require the linkage of PAN for verification purposes. This aids in assessing your creditworthiness and ensures responsible lending practices.
- Linking PAN is a prerequisite for opening a Demat and trading account, allowing you to invest in securities. This measure is essential for participating in the stock market.
- Many government subsidies and schemes require a linked PAN for eligibility. This linkage ensures that benefits and subsidies are directed to the intended individuals, reducing the risk of misuse.
- For those engaged in international transactions, linking PAN is crucial for complying with foreign exchange regulations.
How to Link a PAN Card with a Bank Account?
Online (Through Internet Banking)
Step 1 - Log into 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 updating, Link Your PAN, Update PAN, or other similar relevant option.
Step 5 - Enter your PAN Card number. You might also have to enter your date of birth on the PAN Card and your registered e-mail ID.
Step 6 - Once you input the correct details, your PAN and bank account will get linked in 2 to 7 working days.
Note: Each bank's online portal will have different ways to reach the PAN-account linking page. The steps given above are generic and not specific to any bank.
Check Benefits of PAN Card
Through a Phone Hotline
To link your PAN Card with any bank account by phone, call the customer care hotline of the bank. Follow the instructions given below to complete the linking process:
Step 1 - Call your bank's customer care center.
Step 2 - Go through the IVR menu during the call. Select the right menu options.
Step 3 - Connect to the customer care executive.
Step 4 - Tell the executive you want to link your PAN to the account.
Step 5 - Answer their customer verification questions.
Step 6 - Tell them your PAN Card number.
Step 7 - You will get a service request number and confirmation at the end of the call. Check with the bank again if the numbers are not seeded within 7 working days.
Note: Each bank's phone banking/hotline has different IVR options. The steps given above are generic and not specific to any bank.
Through an Mobile App
To link your PAN number with your bank account using the mobile app, follow these steps:
Step 1 - Open your Bank's Mobile Banking App.
Step 2 - Navigate to the Profile section or e-services section.
Step 3 - Look for an option that allows for PAN updating.
Step 4 - Choose the relevant option and provide the requested details, such as PAN Number, Account Holder's Name, Date of Birth, etc. The details required may vary depending on the bank.
Step 5 - After entering the details, click on ‘Submit.’
Step 6 - You might receive an OTP (One-Time Password) for authorization. Enter the OTP in the designated field.
Step 7 - The system will verify your PAN information in the database and approve the linking process.
Step 8 - Upon successful linking, you may receive an SMS or Email confirmation.
Through an ATM
Step 1 - Visit your nearest Bank ATM
Step 2 - Insert your ATM/ Debit Card into the machine and enter the PIN
Step 3 - Navigate to the "Service Request" or "Account Service" Section.
Step 4 - Select the option Update/Link your PAN Card.
Step 5 - Enter your PAN Details and other required information and submit.
Step 6 - Confirm the details you may received confirmation message on ATM screen.
Step 7 - Wait for confirmation, bank take few days to proceed the request after linking sucesfully done you received SMS on your mobile.
Link PAN Card with Bank Account Offline (at a Branch)
To link your PAN with account at a branch, follow the steps given below:
Step 1 - Visit the branch in which you hold your account (Home Branch).
Step 2 - Ask for PAN Card Update Form (KYC Form).
Step 3 - Fill all the relevant details of the form correctly.
Step 4 - Submit the form and a self-attested photocopy of your PAN Card. You might also be asked to write a letter addressing the Branch Manager, requesting for update of PAN in your account.
Note: Each bank's at-branch PAN update process might be different. The steps given above are generic and not specific to any bank.
Before you go to link your PAN and bank account, make sure you check if the two have already been linked earlier. For all you know, you may already have provided your PAN to the bank. To check that, log in to the income tax e-filing portal and go to your profile. Check if it already shows an account number, and whether it is the one that you regularly use.
Benefits of Updating your PAN Number on Bank Account
Benefits of Updating PAN Number on your Bank Account
The following are the benefits of linking your PAN to your Bank account:
- PAN Card serves as proof of identity and guarantees KYC compliance in a bank account.
- Linking PAN with the bank account helps identify and prevent duplicate accounts within the same bank and across branches.
- The income tax department can track expenditure against earned income, aiding in tax-related inquiries.
- Income tax refunds are directly remitted to the bank account linked to your PAN Card, making linking compulsory for smooth refunds.
- For remittances exceeding ₹50,000/-, PAN number or Form 60 is required to avoid issues with the bank.
- Failure to link PAN with the bank account may lead to higher TDS deductions (20% instead of 10%) on income from fixed deposits above the taxable limit.
- PAN Cards are mandated in financial transactions to combat black money.
Related Articles on PAN Card
PAN Acknowledgement Number Search
FAQs on Linking PAN Card with Bank Account
- What happens if I do not link my PAN Card to my bank account?
You will not be able to open a fixed deposit account or deposit more than Rs.50,000 in cash if you do not link your PAN Card to your bank account. Additionally, if the interest earned on the fixed deposit account goes over Rs.40,000 (more than the current 10%), TDS will also be deducted at a rate of 20%.
- How can I check if my bank account is linked to my PAN Card?
You need to log into the income tax e-filing portal and check if your bank account number is displayed under the ‘Profile’ section.
- What are the advantages of linking a PAN Card and a bank account?
If you link your PAN Card to your bank account, you will be able to receive income tax refunds directly into your bank account.
- Can I link my PAN Card to my bank account online?
Yes, you can link your PAN Card to your bank account online.
- Do I need a PAN Card to open a bank account?
Yes, a PAN Card must be provided to open a bank account.
- I have two bank accounts in a bank. Do I have to link both with my PAN Card?
Yes, you need to link all bank accounts with your PAN Card, regardless of whether they are in the same bank.
- Can I link my PAN Card to a joint bank account?
Yes, you can link your PAN Card to a joint bank account by providing the PAN details of both account holders.
- Is linking of PAN with savings account mandatory?
Yes, linking PAN to savings account is mandatory for tax purposes and for financial transactions above a certain amount.
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