One of the integral parts of money is taxes, and the essential part of taxes is earning. So, how does the Income Tax Department (ITD) know about your earnings? The answer is your bank account. And that is why your PAN card link with your bank account is an important step. 

Let’s look at the nitty-gritty of making the bank account link with a PAN card. 

Why do you have to link your PAN card with your bank account?

The Central Board of Direct Taxes (CBDT) has made it mandatory to link PAN numbers of individuals and other entities with their savings accounts. This mandate was introduced to transfer your income tax refunds directly to your savings bank account. 

The regulatory authority has also put certain restrictions on your savings account transactions if your PAN is not available. You must link your bank account with your PAN card to enable them. 

As per the restrictions, no transfer or debit services could be availed by account holders who don’t have a Permanent Account Number (PAN). To avail of these services, the account holder either has to get a PAN or fill and submit Form 60 for every payment specified under clause c) to (f) of rule 114B of the Income Tax Act. This mandate was introduced to prevent tax evasion.

Thus, it is important to link a bank account with a PAN card to have smooth banking services. 

Do you want to have an account where you can save for all your goals separately? Your Fi account helps you segregate your goals into Jars and save for them bit-by-bit through deposits. This feature is available with the Fi money app that allows you to create Jars like “Emergency Funds”, “Goa Vacation”, “Wedding Jewellery”, and other goals. 

You can start saving money for these goals, but you would first need an account and your PAN card linked to it.

How to link a PAN card with a bank account online? 

For these steps to complete your PAN card, link with your bank account:

1. Make a list of your existing bank accounts.
2. Login to the internet banking portal of your bank using your login ID and password. 
3. Go to your dashboard and look for tabs such as ‘Services’, ‘Service Request’, ‘Link Aadhar/PAN’ or ‘update PAN’
4. Select the appropriate option, and you should be directed to the PAN card linking page in your banking app. 
5. Enter your PAN, your date of birth and your registered email address. 
6. Check the details before proceeding.
7. Submit the details, and your bank account will be linked to your PAN within seven working days from your application.

It was quick and simple, wasn't it? Now that your PAN card link with your bank account is done, you can avail banking services smoothly. 

To conclude

It is mandatory to link your PAN card with your bank account. You are required to link each of your bank accounts individually while completing your KYC process. This norm helps the income tax department catch tax dodgers and fetch all your tax information in one place. So, link your bank accounts with your PAN if you haven’t done it yet.

Frequently Asked Questions

1. Is PAN card automatically linked to bank account?

No, your PAN card won't be automatically linked to the bank account. You can get your PAN linked with your bank account by either getting in touch with your bank or easily through their website. The linking of PAN card with a bank account is important because it helps in keeping a track of financial transactions and ensures that the bank account is KYC compliant.

2. What happens if PAN card is linked with bank account?

Linking the PAN with your bank account increases transparency and helps the government in keeping a track of transactions, KYC compliance and more.

Overall, it helps individuals in filing for income tax. Once your PAN is linked, you can fetch pre-filled information around your account making tax filing all that easier. It also helps in filing for ITR and ensuring that you weren't charged TDS wrongly.

3. Is it mandatory to link PAN to bank account?

Yes, it is mandatory for your bank account and PAN to be linked. The Indian government has made this mandatory for transparency and ease during the Income Tax process.

4. How can I know my PAN card number linked?

You can check if your PAN card is liked to your account in the following ways

1. Online Banking Portal: You can log in to your bank's website/portal and check your account details. If your PAN card is linked to your bank account, it should be mentioned in the account details.
2. Visit Bank Branch: You can visit the branch where you have your bank account and ask the bank representative to provide you with the details.
3. Check IT Department Portal: You can check the PAN card details on the official website of the Income Tax Department. To check the details, you will need to provide your PAN card number and date of birth.