Is it necessary to link your PAN card with bank account?

9 min read. The income tax department had, in a public advisory issued in February 2019, mentioned that all taxpayers should link their PAN with their bank accounts for direct processing of refunds into their bank accounts. Taxpayers can link any type of account for this purpose – savings or current account.

What are the benefits of adding PAN card to bank account?

Benefits of Having a PAN Card

• IT Returns Filing. All individuals and entities who are eligible for Income tax are expected to file their IT returns.
• Identity Proof.
• Tax Deductions.
• Claiming Income Tax Refund.
• Starting a Business.
• Opening a Bank Account.
• Opening Demat Account.
• Purchase & Sale of Immovable Assets.

What is the benefit of linking bank accounts?

What Does Linking Bank Accounts Do? When you link your checking account and savings account to each other, you’re essentially making it possible to conduct transactions between the two accounts electronically. Once your bank links your accounts, you can more easily move money between them as needed.

Can I use e PAN card for opening bank account?

The e-PAN is issued within 10 minutes in a PDF format. Applicants can use the PAN number to open bank accounts, start investing etc.

What is the main purpose of PAN card?

The Permanent Account Number (PAN) card, issued by the Income tax Department, is one of the most important documents nowadays. The card was issued in order to prevent tax evasion by individuals and entities as it links all financial transactions made by a particular individual or entity.

What information do we get from PAN card?

These transactions include tax payments, tax deducted at source/tax collected at source credits, returns of income/wealth/gift, specified transactions, correspondence and so on. PAN, thus, acts as a unique identifier of persons for the tax department.

What does link accounts mean?

Linked savings accounts are connected to another account such as a checking or negotiable order of withdrawal account, making it easier to transfer money between accounts. Linked accounts are sometimes called packaged accounts.

What does it mean when bank accounts are linked?

A linked account is an account linked to another at the same financial institution so that funds can be transferred between them electronically. For example, many people link their checking and savings account so that funds can be easily transferred electronically between them.

Is PAN mandatory for bank account opening?

Documents required to open an account: – Proof of age and identity: Documents that are accepted by the banks as proof are PAN card, Voter ID, Passport, Driving licence, or Aadhaar card. – Recent passport-sized photographs are required by banks or financial institutions.

Which is better e PAN or physical PAN card?

e-PAN is a valid proof of PAN. e-PAN contains a QR code that possesses demographic details of PAN card holder such as the person’s name, date of birth and photograph. These details are accessible through a QR code reader and is duly recognised.

Is it mandatory to link PAN card with bank account?

The government has now made it mandatory for people to link their PAN Card number with bank accounts to do transactions through them and also Aadhaar Card for the purpose of Income Tax Returns

What is the use of a PAN card?

PAN card, i.e. permanent account number, is provided by the Income Tax (I-T) department to every income tax payer. PAN card is compulsory and is required for doing most financial transactions. The I-T department has made it mandatory to link your bank account with PAN.

How do I get my PAN card number from the bank?

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.

What happens to my PAN card if I Change my Country?

The pan card is not affected if the address of the person changes. So you really need not harbor any tension of applying for a new one if you choose to shift your base within your country. Pan card stands out to be very useful in cases where one wishes to open a new bank account for that matter.