The Income Tax (IT) Department of Indian will issue refunds only via e-mode to the taxpayer’s bank accounts starting from March’ 2019 and the taxpayers have to link the PAN card with their accounts for the same.
The IT department said that the income tax refunds will be sent directly to the bank accounts of the taxpayers through the e-refund process from March of this year. Since only e-refunds will be entertained, one has to link his/her bank’s account with his/her Permanent Account Number (PAN). The department further adds that the account could be current, cash, savings, or overdraft and a taxpayer is also needed to validate his/her account with the e-portal of the Income Tax Department to get the tax refund.
Till now, the taxpayers were getting the refunds from the Income Tax Department either through the cheques (account payee) or in their bank accounts according to the class of the taxpayers. However, now only the refunds will be credited to the bank accounts (linked to the PAN) of the taxpayers through e-refund mode.
So, if a taxpayer’s bank account is not linked with his/her PAN, then it is suggested to get it done by going to the bank branch and providing all the relevant information there.
If the bank of a taxpayer is integrated with the e-filing portal of the Income Tax Department, then pre-validation can easily be done through Electronic Verification Code (EVC) and via net-banking.
According to an advertisement given by the IT- Department in Times of Indian on 26th February’ 2019, if the bank account of a taxpayer is not integrated with the e-filing portal, then the IT-Department will itself validate the bank account through the details provided by the taxpayer.
The e-mode of an income tax return is introduced by the department to make this process swift, secure, and direct.
If one has not pre-validated his/her bank account for getting the e-refund from the Income Tax Department, then he/she can follow the below steps to do the same:
An individual can remove or add a bank account only after completion of 24 hours. The website shows the failed status if the validation process is failed at the bank. In addition to this, the bank will not allow any change of email id or mobile number without revalidation by the bank.
Recently, the Aadhar-PAN linking has been made ‘compulsory’ for those who are filing the income tax return and the process has to be finished before 31st March’ 2019.
According to recent data update, the Income Tax Department has issued 42 Crore PAN cards so far of which approximately 23 Crore PAN cards have been linked with the Aadhar card. Aadhar card is issued by the Unique Identification Authority of India (UIDAI) to the Indian residents, while PAN is a 10-digit code that is alphanumeric issued by the Income Tax Department of India to an individual, entity, or firm.
In this way, this is one of the most important news for all the taxpayers as in order to get the income tax refund, they have to link their bank’s account with the PAN. The step of the e-refund mode is taken to enhance the smoothness and safety of the process of an income tax refund to the relevant and authentic bank accounts.