A PAN card is a unique ID given by the Income Tax Department that helps track your financial activity in one place. You might have seen messages asking you to link your PAN with your bank account. This is required, as it basically connects your income, taxes and major transactions to a single record. So if you have not done it yet, it is best to complete it at the earliest to avoid any issues later.
Read on to know why it is important and how to link PAN to bank account through various methods — online, phone banking, mobile app, ATM or by visiting your bank branch.
Why Link PAN to Bank Account?
Here are some key reasons why it is important to complete the bank account and PAN card link:
- It’s the law: For certain types of accounts and big financial transactions (like large deposits or investments), the government has made it mandatory to link your PAN. If you don’t, your bank might put limits on what you can do or even charge penalties.
- It keeps your taxes in check: Linking your PAN helps the Income Tax Department track your transactions and match them with your income tax returns. It’s a smart way to stay compliant and avoid trouble later.
- It’s easier for banks to verify you: When your PAN is linked, banks can quickly verify your identity and address, without asking for extra paperwork every time you open an account or update your details.
- No more carrying around your PAN card: Once linked, you won’t need to provide a photocopy of your PAN card every time you want to invest, open a new account or do other financial stuff. Everything’s already synced.
Step-by-Step Guide to Link PAN to Bank Account
Below is a detailed step-by-step guide to help you link your PAN card with your bank account through various methods such as net banking, mobile banking app, phone banking, ATM or by visiting the bank branch. Carefully go through the instructions for the specific method you wish to use.
- Through Internet Banking
Follow these steps to link PAN to bank account through net banking:
- Step 1: Open your bank’s Internet banking portal and log in using your credentials
- Step 2: Go to your Profile or Personal Information section
- Step3:Look for menu options like PAN Updation/Linking/Seeding/Registration. Click on the relevant option.
- Step 4: Enter your PAN card number and other details like DOB.
- Step 5: Submit the details. PAN-account linking will be completed within 2-7 working days.
- Through Phone Banking
To link your PAN card with a bank account via phone banking, follow these steps:
- Step 1: Call your bank’s customer care number
- Step 2: Select relevant options to get directed to an executive
- Step 3: Request the executive to link your PAN to the account
- Step 4: Provide accurate PAN details along with verification information
- Step 5: Note down the confirmation/reference number received
- Through the Mobile Banking App
To link PAN with bank account using a mobile app can be done easily by:
- Step 1: Open your bank’s mobile app and go to Profile/e-Services section
- Step 2: Choose the “Link PAN” or “Update PAN” option
- Step 3: Enter the requested information, such as PAN, account holder name, DOB, etc.
- Step 4: Submit the details after carefully verifying
- Step 5: Authorisation using OTP
- Step 6: Confirmation message on successful linking
- Through ATM
Follow the steps below to link your PAN card with your bank account via ATM:
- Step 1: Visit the nearest ATM of your bank
- Step 2: Insert your ATM/debit card and enter your PIN
- Step 3: Go to the “Service Request” or “Account Services” section
- Step 4: Select the “Link/Update PAN Card” option
- Step 5: Input PAN card details accurately
- Step 6: Take note of the reference number displayed on the ATM screen
- Offline at Bank Branch
To link your PAN card with the account offline, here is the process:
- Step 1: Visit the home branch where your account is maintained
- Step 2: Ask for the PAN Linking/Updation form and fill in the details
- Step 3: Submit the form with a self-attested PAN card copy
- Step 4: You may need to submit a letter to the Branch Manager requesting PAN updating
For Which Accounts PAN is Mandatory?
Linking your PAN card is mandatory for certain financial accounts as per government regulations. Typically, PAN linkage is required for:
- Savings Accounts
- Current & Cash Credit Accounts
- Fixed and Recurring Deposit Accounts
- Demat Accounts
- Credit Card Applications
Benefits of Updating Your PAN Details on Bank Account
Updating your PAN details with your bank account comes with a few practical benefits that make managing your finances easier.
- Better compliance: Linking your PAN helps you stay in line with tax rules and avoids any penalties or restrictions
- Smooth transactions: It ensures your high-value transactions go through without any delays or issues
- Faster verification: Your bank can verify your details quickly, making updates and applications easier
- Easy tax tracking: Your transactions stay linked to your PAN, which makes filing taxes simpler
- Less paperwork: You do not have to submit your PAN again and again for different banking needs
Documents Required to Link PAN with Bank Account
Linking your PAN with your bank account usually requires only a few basic documents:
- PAN card copy: A self-attested copy of your PAN card is required to verify your PAN details
- Identity proof: In some cases, you may need to show a valid ID proof such as an Aadhaar card, a passport or a driving licence
- Bank account details: Your account number and related details are needed to complete the linking request
- PAN linking form: If you are visiting a branch, you may need to fill out and submit a PAN updation or linking form provided by the bank
[Source: Link PAN with Bank Accounts – ClearTax]
Conclusion
Linking your PAN card with your bank account is a simple process that can be quickly completed through multiple channels such as net banking, mobile/phone banking, ATM or bank branch visits. This linking helps maintain seamless financial transactions and tax compliance as per Indian income tax laws.
PAN also acts as an important document while applying for a quick loan. With Fibe, you can get up to ₹10 lakhs with flexible repayment options. Fibe makes sure you get the funds you need without any hassle. Visit the website or download the Fibe App today to explore more!
FAQs on Linking PAN Card with Bank Account
Is it possible to link my PAN to my bank account online?
Yes, most banks provide the facility to link your PAN to your bank account easily through net banking. Simply log in to your account, go to the profile/personal details section and look for the ‘Link PAN’ option. Submit your PAN details along with verification information to complete the linking online.
How to check PAN card link with bank account?
You can check your bank account statement or net banking profile or request your bank to provide an account linkage status letter/SMS confirmation. If the linkage is successfully completed and seeded with your customer ID, it will have an updated PAN linking status.
What happens if I do not link my PAN Card to my bank account?
As per income tax guidelines, not linking your PAN with certain financial accounts can lead to restrictions in transactions, including cash deposits and withdrawals beyond a limit. You may also be liable for penalties for non-compliance if PAN is mandatory for your account type.
I have two bank accounts in a bank. Do I have to link both with my PAN Card?
Yes, your PAN card should be linked to all your operative bank accounts, including multiple savings accounts, current accounts, cash credit accounts, etc. This linking helps banks verify your KYC details seamlessly across all your accounts and allows smooth transactions.
Can I link my PAN card with a bank account offline?
Yes, you can link your PAN offline through phone banking or by visiting your bank branch. You may need to fill out a KYC form and provide your PAN details for verification.
How long does it take to link a PAN with a bank account?
The time depends on the method you choose. Online methods can be instant or take up to 24 hours, phone banking may take up to 2 days. Branch requests usually take 1 to 3 working days.
