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.
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 Reserve Bank of India (RBI) 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.
On 15 December 2016, the RBI mandated several restrictions on a savings account that has not undergone the new KYC norms. 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.
For these steps to complete your PAN card, link with your bank account:
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.
It is mandatory to link your PAN card with your bank account. Ywou 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.