A Detailed Guide On How to Link PAN Card with Bank Account

Linking your PAN (Permanent Account Number) card with your bank account is an essential step for financial management and compliance in India. In this comprehensive guide, we’ll walk you through the reasons behind the requirement and how to link PAN card with bank account, ensuring smooth financial transactions and regulatory adherence.

Why is it Important to Link PAN with Bank Account?

  • Connecting your bank account with your PAN is crucial for adhering to income tax regulations. It guarantees that your financial activities are transparent and easily trackable for tax evaluation purposes.
  • For large transactions, linking your bank account with your PAN is compulsory. This requirement aids in detecting and preventing potential tax evasion and other financial misconduct.
  • When applying for a credit card, banks typically require your PAN to be linked for verification. This process helps in evaluating your creditworthiness and ensures responsible lending.
  • Linking your PAN is necessary when opening a Demat and trading account to enable you to invest in securities. This step is vital for participating in the stock market.
  • Numerous government subsidies and programs necessitate a linked PAN for eligibility. This ensures that benefits and subsidies reach the intended recipients, minimising the risk of abuse.
  • For those involved in international transactions, linking your PAN is essential to comply with foreign exchange regulations.

Pan Card Linking Methods:

You can link your PAN with your bank account in two ways – online and offline.

How to Link PAN Card with Bank Account Online?

Net Banking

You can link your PAN card with your bank account through net banking. Here’s how:

  • Visit the official website of your bank.
  • Access your Net banking account by entering your login credentials.
  • Find the section for PAN linking or KYC on the dashboard.
  • Enter the necessary information from your PAN card.
  • Submit the details to finish and verify the linking process.

Mobile Banking Application

Apart from net baking, you can also link your PAN card with your bank account through your bank’s mobile application. Here’s how:

  • Install your bank’s mobile app from the designated app store.
  • Use your mobile banking credentials to log in.
  • Locate the PAN linking or KYC option within the app.
  • Accurately input your PAN card information.
  • Submit the details and follow any required verification procedures to complete the process.

How to Link PAN Card with Bank Account Offline?

Bank Branch

You can visit the nearest bank branch to link your PAN card with your bank account. Here’s how:

  • Go to the branch where you hold your account.
  • Ask for a PAN Card Update Form, which is also referred to as the KYC Form.
  • Carefully complete all the necessary fields on the form.
  • Hand in the filled-out form along with a self-attested copy of your PAN card.
  • Additionally, you might need to submit a written request to the Branch Manager to update your PAN information in your account.

ATM

  • Visit an ATM that is part of your bank’s network.
  • Insert your debit card into the machine and enter your PIN.
  • Navigate to the section for PAN linking or updates.
  • Provide your PAN card information when asked.
  • Verify the linking process and complete any further steps as instructed.

Phone Banking

  • Contact your bank’s toll-free customer service number, which can be located on your bank’s passbook, chequebook, brochures, or other documents.
  • Follow the IVR prompts to reach the PAN card customer service representative.
  • Notify the representative that you wish to link your PAN with your account.
  • To confirm your identity, provide the necessary details, such as your account number, address, and debit card number.
  • Share your PAN with the representative and ensure it is correctly recorded.
  • After completing the registration, wait up to two days for your request to be processed, at this point, your PAN will be linked to your bank account.

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

While linking your PAN card to your bank account is necessary, it comes with smoother government processes and other benefits. Here are the list of benefits:

  1. Provides Solid Identity Proof

    A PAN card acts as a strong proof of identity, confirming that your bank adheres to Know Your Customer (KYC) requirements. It presents your official ID to verify everything is legitimate.

  2. Eliminates Duplicacy

    Connecting your PAN with your bank account helps detect and prevent duplicate accounts. This guarantees a uniform financial identity within the bank and across all its branches.

  3. Streamlines Tax Filing & Reduces Paperwork

    Linking your PAN to your bank account streamlines the tax filing process. This connection enables the government to access your financial details easily, reducing the chances of missing out on any tax advantages or deductions.

  4. Fastens Tax Refund Process

    Linking your PAN to your bank account allows quicker tax refunds, which are deposited directly into your account. Ensuring your PAN is linked is crucial for a seamless refund experience.

  5. Provides Government Benefits

    Some government benefits, tax deductions, and subsidies may necessitate having a linked PAN card. If your PAN card isn’t linked, it could increase TDS deductions on specific incomes. Linking your PAN card ensures you receive the maximum benefits from government incentives.

  6. Enables International Financial Transactions

    When engaging in international financial transactions, it is essential to link your PAN. This step ensures that your global dealings proceed smoothly and securely.

  7. Gives Security for Huge Transactions

    For financial transactions above INR 50,000, it is essential to present either your PAN card or Form 60. This requirement ensures that the transaction process is smooth and without issues. Additionally, linking your PAN card to your bank account enhances the security of large transactions, providing an extra layer of protection and ensuring the safety of your financial transfers.

Bottom Line

Linking your PAN card with your bank account is a straightforward yet crucial step in managing your finances effectively. It not only ensures compliance with regulatory requirements but also facilitates smoother banking operations, including higher transaction limits and reduced tax deductions.

FAQs:

  1. How do I check whether my PAN card is linked to my bank account?

    To check whether your PAN card is linked to your bank account, log into your income tax e-filing portal. Under the ‘Profile’ section, check whether your bank account number is listed.

  2. I have two bank accounts in a bank. Do I have to link both accounts?

    Yes, you must link all your bank accounts with your PAN card, regardless of whether they are in the same bank.

  3. What happens if I do not link my PAN card to my bank account?

    If you do not link your PAN card to your bank account, you will be unable to open a fixed deposit account or deposit over Rs. 50,000 in cash. Additionally, if the interest earned on the fixed deposit exceeds Rs. 40,000 (over the current 10%), TDS will be deducted at a rate of 20%.

  4. What documents do I need to link my PAN card with my bank account?

    Generally, you must provide a self-attested copy of your PAN card along with a PAN card linking form from your bank. Note that specific requirements may differ slightly between banks.