Link PAN Card with Bank Account Step By Step Guide

Link PAN Card with Bank Account Step By Step Guide

Nowadays, we are seeing a boom in the interlinking of identity proofs with one another so that authenticity can be achieved. PAN Card is another similar identity proof now made mandatory to link with a bank account and other documents like aadhaar. PAN Card or Permanent Account Number is a 10-character Alphanumeric number issued by the Income Tax(IT) department to all the taxpayers in the country. It is important to link PAN Card with a bank account as it serves the purpose during almost all financial transactions and filing Income Tax Returns. 

How to Link PAN Card with a Bank Account

There are various modes to link PAN Card with a bank account, but why is it even made compulsory? The reason is that it will help your tax refunds get credited directly into your bank account. You have the liberty to choose any type of account from savings, current, cash, checking etc., to link PAN Card and a Bank account. This facility has made it easier for the banks to send the refund cheques back to your residential address, which was not even an option earlier.

There are mainly three modes by which you can link a bank account with PAN Card:-

  1. Online mode using Internet Banking
  2. Offline mode by visiting the nearest bank’s branch
  3. Phone mode using Bank’s Hotline

Methods to link PAN card with bank account

All three modes will be explained in detail here.

Link PAN Card and Bank Account Online

Here, we use Net banking in online mode for pan, and bank account linking by below mentioned steps:-

  1. First, you must log in to your bank’s net banking account.
  2. Enter credentials like User ID and security code(password) in the designated columns.
  3. After that, check your profile, search for menu options like Services, Service Requests or PAN registration, and choose the optimum option.
  4. Now, choose PAN Card updation, then Link your PAN, and then update PAN or if there is any other similar option, choose that.
  5. At last, you have to enter details like PAN Card number, date of birth, as mentioned in the PAN Card and Email ID registered with the bank. 

When you have followed the above procedure in the same manner, the pan card bank account link will be complete in 2-7 days.

Important:- Every bank has a different policy, and their portal works differently, so you will have multiple ways by which you can reach the PAN and bank account linking page. Remember that the abovementioned steps are not generic or specific to any bank. 

PAN and Bank Account Linking Offline

By using this mode, you simply have to visit the bank’s branch in which you have your account and follow these steps to get the interlinking done:-

  1. First, you have to visit the bank branch which holds your account.
  2. Now, just ask for a form with the name PAN Card Update application form or KYC form from any of the executives.
  3. After you have filled all the relevant details in the form and have duly checked it, submit its self-attested copy to the branch. 

The executive might ask you to write a letter which addresses the Branch Manager to request linking the PAN Card with your account.

NOTE:- Each bank follows a different process for PAN Card updation, so the steps mentioned above are not specific or generic concerning any bank. You might also have to check if the linking is already done, as you may have given the PAN Card to your bank, and they have completed the procedure. You can log in to the Income Tax e-Filing portal and visit your profile if you want to check it. If it already shows an account number and is already in use, your PAN Card is already linked. It is the one you regularly use.

Link Your Bank Account with PAN through Mobile

In this mode, you just have to dial up the customer care hotline of the bank and follow this simple procedure to perform PAN Card and bank account linking:-

  1. First, make a call to customer care or your bank.
  2. Now, go through the IVR menu at the time of the call and choose the right menu options.
  3. After that, you’ll be connected with the customer care executive. Tell them you wish to link your PAN Card with your bank account.
  4. Now, they will ask some questions to verify your information as a customer.
  5. At last, they’ll ask you for the PAN Card number. Just provide them with the number, and the process will begin. 

After the call is disconnected, you’ll receive a request number for service and a confirmation message for the same. If not, check with the bank if the numbers are not linked.

Important:- The steps mentioned above are not specific or generic with respect to any bank, as every bank follows a different policy for linking PAN Card with a bank account.

Why should you link a PAN Card with a bank account?

As we know, black money is becoming a menace in the country, so making PAN Card with bank account linking mandatory is one way to hold the grip over it and control its flow. The interlinking between PAN Card with Aadhaar or bank accounts is made compulsory to remove duplicates of currency, thus, bringing in the appropriate amount to be paid as tax. It also makes it easy for the Income Tax department to issue refunds to the bank accounts if they’re linked with the PAN Card. 

Benefits of Linking PAN Card with Bank Account

There are a few more reasons why linking PAN Card with a bank account is made compulsory for every taxpayer in the country:-

  1.  It identifies if there's any duplicity of bank accounts in the same bank, and if so, it makes sure to prevent this duplication in other branches.
  2. The tax refunds from the Income Tax department are directly credited back to your account, so interlinking your PAN Card with your bank account makes the refund transaction easy.
  3. PAN Card is considered one of the identity proofs and assures KYC compliance with the address proof in the bank account.
  4. TDS deduction in the case of fixed deposits is charged at 20% if your PAN Card is not linked with the bank account instead of 10%, which is actually above the tax threshold.
  5. If you deposit INR 50,000 in your bank account, you need a PAN number or Form no. 60, so keeping the PAN Card linked with the bank account is advised. 

Above all, the IT department could use it to track the expenditure of taxpayers against their earned income which is useful in case of any query raised by taxpayers.


The provision of linking a PAN Card with a bank account is made compulsory to control the flow of black money, duplicates of currency, and many more reasons. It is easy to get the exact data of taxpayers and their earnings so they can be checked against the tax paid. It becomes even handier for the Income Tax department to credit the refunds via e-modes into the taxpayer’s account as the interlinking stands as the way of identity proof for the taxpayers.

FAQ's About Link PAN Card with Bank Account

Do we need to link a bank account with a PAN card?

Yes, the government has made it compulsory for all bank account holders to link their respective bank accounts with the PAN Card.

Can we link a PAN card to a bank account in any branch?

You can link the PAN Card with that bank in which you already have an account. You just have to get a KYC form from the branch, fill it with the correct PAN Card details, and submit it within that branch. You have to attach a copy of your PAN Card, and after the bank’s verification, your account will be linked with the PAN Card.

Why is a PAN card necessary for a bank account?

As in the case of a refund, you’ll be directly credited into the bank account, which is linked with the PAN Card, as this document is considered an essential proof of identity, and it also controls the flow of black money in the currency.

Do I Need to pay any charges for a Linking PAN Card with Bank Account?

You’ll be charged INR 500 if you have linked the PAN Card with your bank account before June 30, 2022, and post that, you’ll be charged INR 1000.

What happens if a PAN card is not linked with a bank account?

In that scenario, you won’t be able to open a Fixed Deposit account or deposit more than INR 50,000 in the bank account and also TDS deduction will rise to 20% directly from the tax threshold of 10% on interest of FD account if it is more than INR 40,000.

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