How to Link PAN with Bank Account?

The Permanent Account Number (PAN) is a medium to identify the various taxpayers in the country. It is a unique 10-digit identification alphanumeric number( a number that contains both alphabets and numbers) assigned to citizens of India, mainly to the taxpayers. It is also issued to foreign nationals who are liable to pay taxes to the Indian Government. 

When PAN is allotted to an individual, it stands valid for a lifetime because it remains unaffected by any change in the address. 

The Indian government has made it mandatory for citizens of the country to get their PAN card linked to a bank account to do transactions through them and for Income Tax Returns. Once the PAN card is linked to your bank account, the income tax refunds will be credited directly into your account. If the primary bank account is not linked to the PAN account, the individual doesn’t receive any refunds. Any type of account can be linked to the PAN – be it savings, current, checking, cash, or overdraft, every account stands eligible.

There are three ways through which you can get your PAN card linked to a bank account, read on to know more: 

PAN Card link to Bank Account through Internet Banking (Online)

Getting your PAN card linked to your bank account is mandatory, but if you don’t have the time to go to the bank, internet banking has made it feasible for you to sit in the comfort of your home and get the linking done.

How to link PAN with a bank account through internet banking? Follow these steps to get it done: 

• Open your bank’s website and go to their internet banking login page. 
• Log in to your internet banking account by typing in your user ID and password.
• Click on the ‘Service Requests’ option from the various options present on the website.
• Find the ‘PAN Card Updation’ option and click on it.
• Now enter your PAN number, the DOB mentioned on your Pan Card, and your registered email address. 
• Recheck all the details you’ve entered and click on the ‘Submit’ button.
• It will take a couple of days, and then your PAN will be linked with your bank account. The overall duration takes anywhere between 2-7 days.

PAN Card link to Bank Account on Call (Customer Care)

Your PAN Card can be linked with your bank account even if you don’t have access to the internet at home. Make a call to the customer care hotline of the bank and follow the IVR steps mentioned. 

How to link PAN with bank account on call? Follow the steps below: 

• Call your respective bank’s customer care hotline.
• Go through the IVR menu while on the call and select the suitable options as per your requirements.
• Connect to the customer care executive.
• Inform the executive you want your bank account linked to your PAN.
• Answer all their customer verification questions.
• When asked, apprise them of your PAN Card number.

You will then receive a service request number and confirmation at the end of the call. Connect with the bank if the number is not seeded within seven working days.

PAN Card link to Bank Account Offline

Your PAN card can be linked to your bank account offline; that is, you can get it linked by visiting your nearest bank branch. All those who aren’t familiar with the process or do not have access to internet banking or mobile banking can use this method. 

How to link PAN with a bank account offline by visiting the nearest bank branch? Follow these steps to get it done: 

• Visit your bank’s home branch from where your account is being operated.
• Ask the employees for the PAN updation form (KYC) and fill it out thoroughly. Make sure that you do not make mistakes or overwrite the form.
• Submit the following documents:
  • PAN updation form (KYC)
  • Self–attested copy of your PAN card
  • A letter that addresses the branch manager about linking your PAN with your bank account
• Once submitted, your PAN will get linked with your active bank account. 

Please note that all the steps mentioned above are generic and not specific to any bank.

Is PAN Card Mandatory for Opening a Bank Account?

There is no mandate that you have a PAN card to open your bank account. You can use either the Aadhaar Card or Form 60 for this. 

Aadhaar Card

Under section 139A of the Income Tax Act, 1961, a PAN card is a must for some categories of individuals, such as those with taxable income and carrying out high-value financial transactions or withdrawals in the bank. However, the income tax department also provides two alternative solutions for those who do not own a PAN card or whose PAN number is not readily available at the time. 

Those who don’t have a PAN card but possess the Aadhaar card can present the Aadhaar Card in lieu of the PAN. The Income Tax Department automatically generates a PAN linked to the Aadhaar card in such cases. Those allotted the PAN can also use their Aadhaar number provided that the two are already linked.

Form 60

Individuals who do not have a PAN card can fill out Form 60 under the Income Tax Rules, 1962. Form 60 is a signed declaration stating that you do not possess a PAN card and your income is under the prescribed taxable limit. Form 60 also seeks your income details.

If you have already applied for PAN, but it is yet to be delivered, you can fill out this form only after giving the PAN card application acknowledgement number.

The Process of Verifying PAN Card Link Status with Bank Account Online

The second question after – How to link the PAN card with the bank account? Is how to check whether or not it has been successfully linked. Well, it is only human to cross-check whether you have successfully followed the procedure or not. It is known that your PAN card can be linked via your mobile phone by installing the bank’s official application. Mostly, you get an email or an SMS confirming the successful linkage. The users can also check whether their bank account is linked to their PAN card by logging into the income tax e-filling portal. Here, you can check whether or not your bank account number is displayed under the ‘Profile’ section. This way you can check that your PAN card is linked to your bank account.

Advantages of Updating PAN Number on Your Bank Account

There are many benefits of having your PAN card linked to your bank account. Some of them are listed below:

• PAN card acts as identity proof and ensures KYC compliance in your bank account.
• If you link your PAN card with your bank account, you can find and avoid duplicate accounts within the same bank and across branches.
• The income tax department could trace expenditure against earned income, helping in tax-related inquiries.
• The income tax refunds are directly remitted to your bank account which is linked to your PAN card. This makes the linking mandatory for smooth refunds.
• You’d need the PAN number or Form 60 to avoid issues with the bank in case the remittance exceeds Rs 50,000.
• If you fail to link the bank account with the PAN, you might face higher TDS deductions (say, 20% instead of 10%) on income from fixed deposits above the taxable limit.
• PAN cards are made necessary for financial transactions to fight black money.

What is the Fees for PAN Linking to a Bank Account?

The fee to link the PAN card with the Aadhar Card is Rs. 1000.

How to Link the PAN Card to the Bank Account with a Mobile App?

Are you also wondering how can you link your PAN card to your bank account online? If yes, then you’ve reached the right place. Guess what, now you can link your bank account to your PAN card by using the mobile application. For this purpose, you are required to follow the below-mentioned steps:

• Firstly, you’ll be required to open your bank’s official mobile banking application.
• Then, you’ll have to look for the e-services section or the Profile section.
• Here, you’re supposed to navigate for an option which allows PAN updating. 
• Select that option and fill in the necessary details, like PAN Number, Account Holder’s Name, Date of Birth, etc. These details might vary from bank to bank.
• Once you’ve provided the details, you’ll have to click the ‘Submit’ icon. 
• After this, you’ll receive an OTP (One-Time Password) for authorisation. You’re supposed to enter this OTP in the given field. 
• The system then verifies your PAN information in the database and approves the linking procedure.  
• Once the linking is done, you’ll get an email confirmation or SMS for the same.

A Look at the Bank Account Linkage to PAN Card via Phone Banking

Phone banking/ hotline is yet another way by which your PAN card can be linked to your bank account. You are advised to follow the below-mentioned steps to finish the linking procedure:

• Firstly, you are required to call your bank’s customer care centre. 
• During the call, you should quickly go through the IVR menu and select the correct menu options.
• Following this, you’re required to contact the customer care executive.
• You are then supposed to inform the executive that you wish to link your account to the PAN card.
• You’ll also be required to answer all the customer verification questions.
• After answering the questions, you’ll have to tell them your PAN card number.

After completing this procedure, you will receive a service request number and confirmation at the end of the call. Additionally, you are advised to contact the bank in case the numbers are not seeded within 7 working days.
Important Note: Every bank’s phone banking offers different IVR options. Additionally, the above-mentioned steps are generic and hence might vary depending on the bank.

Understanding the Significance of Bank Account Linking to PAN for Taxpayers

As a taxpayer, you should ensure that your PAN card is linked to your bank account. This is important because the linkage helps in monitoring tax compliance and ensures correct reporting of income and taxes. With this linkage, the taxpayer can check the TDS (tax deducted at source) details deducted from their income via Form 26A. The form is an annual consolidated statement and shows all the tax-related information related to their PAN. It also comprises the details of TDS dedicated by different deductors on various types of income during the financial year.

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