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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. The income tax department would process all refunds online with effect from 1 March 2019. The earlier procedure of sending refund cheques to the postal address will no longer be followed.
Taxpayers can link their bank accounts or pre-validate their bank accounts by logging into the e-filing website https://www.incometaxindiaefiling.gov.in/. Similarly, taxpayers can also check the status of their bank accounts linked with their PAN through their login on the e-filing website.
Before proceeding to link or pre-validate your bank account with your PAN on the e-filing website, it is necessary that you update your PAN with your bank. There are three methods by which you can update your PAN with your bank account number: