Linking your Permanent Account Number (PAN) with your bank account has become increasingly important in recent years. The Income Tax Department has made it mandatory for taxpayers to link their PAN with their bank accounts to ensure seamless processing of tax refunds and to monitor financial transactions. Here’s a comprehensive guide on how to link your PAN with your bank account.

Why Link PAN to Your Bank Account?

Several benefits arise from linking your PAN to your bank account:

• Streamlined Tax Refunds: Linking your PAN facilitates faster tax refund processing, with refunds being directly credited to the associated bank account.
• Income Tax Monitoring: The Income Tax Department uses your linked PAN to monitor your expenditures relative to your reported income, which is particularly useful for audits or tax-related queries.
• Mandatory for Large Transactions: For financial transactions exceeding ₹50,000, presenting your PAN card or Form 60 is mandatory.
• Tax Compliance: Linking your PAN to your savings account ensures accurate reporting of your financial transactions to tax authorities, promoting transparency and compliance.
• Avoid Higher TDS: Interest on bank deposits may attract a higher Tax Deducted at Source (TDS) rate if your PAN is not linked.

Ways to Link PAN with Your Bank Account

There are multiple ways to link your PAN with your bank account, both online and offline, offering flexibility and convenience.

1. Online via Net Banking

Most banks offer the convenience of linking your PAN through their internet banking portals:

1. Visit Your Bank's Website: Navigate to your bank's official website.
2. Log In: Log in to your net banking account using your credentials.
3. Find the PAN Linking Section: Look for the "PAN Linking" or "KYC" (Know Your Customer) section on the dashboard. This is often found under "Service Requests" or "Profile".
4. Enter Details: Fill in the required details from your PAN card, such as your name, PAN number, and date of birth.
5. Submit and Confirm: Submit the information and complete any required verification steps.

2. Through Mobile Banking App

With the increasing use of mobile banking, linking your PAN via your bank's mobile app is a straightforward process:

1. Download the App: Download your bank's official mobile banking app from the App Store or Google Play Store.
2. Log In: Log in using your mobile banking credentials.
3. Locate PAN Linking: Look for the PAN linking or KYC option in the app, generally found under "Services" or "My Profile".
4. Enter PAN Details: Carefully enter your PAN details.
5. Submit and Verify: Submit the information and complete any necessary verification steps, such as entering an OTP (One-Time Password).

3. Offline by Visiting a Branch

If you prefer a more traditional approach, you can link your PAN by visiting your bank branch:

1. Visit Your Branch: Go to your home branch where you maintain your account.
2. Request a KYC Form: Ask for a PAN Card Update Form, also known as the KYC form.
3. Fill Out the Form: Accurately fill out all the required fields on the form.
4. Submit the Form: Submit the completed form along with a self-attested photocopy of your PAN Card. You may also need to provide a written request to the Branch Manager to update your PAN details in your account.

4. Via Phone Banking

Some banks also provide the option to link your PAN through phone banking:

1. Call Customer Care: Call your bank's customer care number.
2. Navigate the IVR: Follow the IVR (Interactive Voice Response) prompts to speak with a customer service representative.
3. Request PAN Linking: Inform the executive that you want to link your PAN to your account.
4. Provide Details: Provide necessary information such as your account number, address, and debit card number to verify your credentials.
5. Communicate Your PAN: Communicate your PAN to the executive and verify that the correct PAN has been recorded.

5. Through ATM

Select banks provide an option to link PAN with a bank account through their ATMs:

1. Visit ATM: Go to the nearest ATM of your bank.
2. Insert Card and Enter PIN: Insert your ATM card and enter your PIN.
3. Select Service Request: Select the ‘Service Request’ or ‘Other Services’ option.
4. Link PAN: Choose the option to link PAN card with the bank account.
5. Enter Details and Submit: Enter your PAN details as prompted and submit.

Important Considerations

• Accuracy: Ensure that the details you provide, especially your PAN number and name, match the information on your PAN card.
• Verification: Banks may take a few days to process your request and verify the details.
• Confirmation: After linking, you may receive a confirmation message from the bank.
• Mandatory Linking: As of February 2019, linking PAN with a bank account is mandatory for taxpayers to ensure direct deposit of tax refunds.
• CBDT Directive: According to a directive issued by the Central Board of Direct Taxes (CBDT) on April 5, 2025, individuals who obtained their PAN using an Aadhaar enrolment ID must link their PAN with Aadhaar by December 31, 2025.

Linking your PAN with your bank account is a crucial step towards ensuring tax compliance and facilitating smooth financial transactions. By following the methods outlined above, you can easily link your PAN and enjoy the associated benefits.