The Income Tax Department (I-T Department) has issued a notice to all taxpayers regarding linking their PAN (Permanent Account Number) with respective bank accounts to receive the income tax refunds from next month.
Since the I-T Department will be issuing refunds “only via e-mode”, anyone who has not linked their PAN cards with bank accounts will not receive tax refunds, even if they are liable to. In the latest public communication session, the I-T authority stated that it would issue “only e-refunds” from March 1, 2019 and directed all taxpayers to “get their refund directly, swiftly and securely in your bank account” by linking their bank accounts with PAN as soon as possible. And the bank account can be either savings, current, cash or overdraft.
The e-mode will replace the previous method where the refunds were made either directly to bank accounts if linked with PAN, or through account payee cheques on case-to-case basis depending on the category of taxpayers. From next month, the I-T refunds will be issued “only” via e-refunds from March 1. Hence, all taxpayers expecting refunds should get their accounts linked with PAN. To check whether it is linked or not, on can log on to the e-filing website of the department at https://www.incometaxindiaefiling.gov.in/.
In case if you do not have PAN linked, you can provide it to their home bank branch and also validate this over the e-filing website of the I-T Department. The mandate of PAN-bank linking comes right after a recently the Centre had made linking of Aadhaar-PAN compulsory for those filing an Income Tax Return (ITR) before March 31, 2019. Since then, 23 crore have been linked with Aadhaar out of 42 crore PANs issued by the Income Tax Department till date.