From this assessment year, the Income Tax Department has introduced a new rule without which you will not be able to get any tax refund. Till now, this requirement was only to link your PAN (Permanent Account Number) with Aadhaar card to file Income Tax Return (ITR).
But now the Income Tax Department has started issuing income tax refunds only through e-mode. The new rule means that the earlier practice of sending tax refund checks via speed post has been done away with. It is also beneficial for those filing ITRs as these checks were sometimes delayed.
Although the I-T department was sending e-refunds for the last few years, the practice of issuing checks has completely stopped in the previous few months.
However, the taxman will credit the refund directly to your bank account only under one condition – the bank account must be linked to your PAN. If the linkage is completed, the Income Tax Department has promised to issue a tax refund directly to your bank account in a fast and secure manner.
A bank account can be savings, current, cash or even an OD account to get tax refund but PAN linkage is mandatory.
Linking your bank account with PAN is not a complicated process. Just make sure that you have shared a copy of your PAN card with your bank branch. If there is a PAN in their record, then both should be added automatically. If the linkage does not occur, the Income Tax Department has asked the taxpayers to contact the bank.
The taxman has also provided the facility to check whether the PAN-bank account is linked or not. You can go to the e-filing portal of the Income Tax Department, click on the Profile Settings section and then [“Verify your bank account in advance,” where you can check that any of your banks Whether the account is already valid.
If validation is not done, you can add a new bank account. [“Status]” column will tell you whether your bank account is valid or not.
To verify your bank account in advance, you will need to provide your bank account number, IFSC code, bank name, and mobile number to be linked to the account.
The e-filing portal also gives you the option to choose which bank account you want to credit.