How to Link a PAN Card With a Bank Account?

Permanent Account Number (PAN) is a crucial document for people in India. It is a unique identification number consisting of 10 digits issued by India’s Income Tax Department. Every individual and entity must have PAN cards as they help the IT department to track Individual’s financial transactions related to taxes.

It is important to link PAN to bank accounts because the government of India made it mandatory in 2019 through a public advisory to link PAN with all taxpayers’ bank accounts. Along with several other reasons, the linking makes it easy to process refunds directly into the bank accounts of the taxpayers.

In this post, let us look at how to link PAN to a bank account in different ways.

What Do You Mean by Linking a PAN Card With a Bank Account?

PAN card link to a bank account or linking a PAN Card With a Bank Account means connecting your Permanent Account Number (PAN), which is a unique ID provided by the government, with your banking services. This linking process, which was made mandatory in the year 2019 by the government, helps the Income Tax Department to track the financial transactions of taxpayers. The linking of the PAN with your bank details is also crucial for important activities like filing income tax returns (ITR), for smooth transactions of high-value amounts, and to support the taxpayer in aligning their finances with regulatory requirements.

Process to Link a Bank Account to a PAN 

1. Through Online Method:

• Visit your bank’s official portal. Use your username and password to log in to your net banking account
• Navigate through your net banking login page to find ‘Service requests’
• Now, submit your PAN number and other PAN details like date of birth (DOB), and your registered e-mail ID
• Once your bank verifies your details, they will link your bank account with your PAN card. The time required for this linking varies from bank to bank.

2. Calling the Bank on their Toll-Free Number:

• Call your bank’s toll-free number (you may find it in the official portal of your bank)
• Call the number and connect to a customer care executive
• Ask the executive to support you in linking your PAN with your bank account
• They might require your bank account number to verify your identity
• You also need to provide your PAN details to update your profile
• Once the details are verified, you will be able to link your PAN with your bank account number.

3. Through the Mobile Banking App:

• Download the mobile banking application of your bank
• Log in to the mobile banking app using your credentials
• Navigate to find the ‘PAN linking/KYC’ option
• Submit the correct PAN card details
• Follow any verification steps as required
• Linking will be done within the specified time

4. Offline Method (By visiting the Bank Branch):

• Visit your bank branch in your vicinity
• Ask for a KYC (know your customer) form from the bank and fill in the details to link PAN with the bank account
• You also need a copy of the PAN to submit at the bank along with other documents
• Once your details are verified by the bank, it will link your PAN to your bank account within the required time, which may vary depending on the bank

5.  Through ATM 

• Visit any of your bank ATMs
• Use your debit card and punch the PIN to start the process
• Now, find the ‘PAN link to the bank account’ option
• Submit the PAN details as required
• Now, press the ‘confirm’ button to link your bank account to your PAN
• Follow any other instructions if required

What are the Benefits of Linking Your PAN Card With Your Bank Account?

There are several benefits of linking your PAN card to your bank account. As you know, having a PAN card is an important requirement for every taxpayer, and linking a PAN card to the bank account of taxpayers has been made compulsory by the Indian government.

Here are some benefits of linking both:

• If your PAN card is linked to your bank account, it can prevent the presence of duplicate accounts in a bank and across all its branches
• The linking of PAN with a bank account also helps the income tax department to track and keep a tab on the finances/expenses of taxpayers and also helps with other tax-related activities
• A PAN card linked to your bank account also supports smooth refunds of ITR by remitting the returns directly to the bank account linked to PAN
• If the remittance is beyond INR 50,000, your PAN number or Form 60 is required to be filled out to avoid any issues with the bank and for a smooth transaction
• Linking your PAN to your bank account will allow taxpayers to limit the TDS deduction to 10% on income from FDs, which can be 20% if your PAN is not linked to your bank account
• Being a strong proof of identity, a PAN card ensures that your bank complies with your KYC or Know Your Customer regulations
• The linking of PAN with a bank account makes tax-related investigations or inquiries easy for the IT Department
• Linking your bank account to your PAN card makes tax filing easy. It allows the government to stay abreast with your financial details while limiting the chances of missing any benefits offered by the government related to tax
• By linking your PAN to your bank account, you can secure your monetary transactions, especially high-value transactions, with an additional protection layer
• Linking a PAN with a bank account also boosts your credit score and is good for taxes
• Linking your PAN is necessary for international transactions to make them hassle-free and secure
• Opening a new bank account also becomes much simpler with less paperwork if your PAN is linked to a bank account

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Sum Up

By linking your bank account to your PAN, you can unlock opportunities to avail yourself of a range of benefits along with many other advantages. It is also the key to ensuring your financial safety and security. Moreover, being mandated by the government, every taxpayer must link their PAN with their bank account.

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