I-T dept to issue e-refunds only in bank A/C linked to PAN card from March 1, 2019
New Delhi: The Income Tax (I-T) Department issues tax refunds to all the individuals and corporate entities who have paid higher income taxes as compared to their actual liability. The Income Tax Department will be only issuing e-refunds from March 1, 2019, onwards in the bank accounts of only those individuals who have linked their respective bank account number with the Permanent Account Number (PAN) card.
According to the Tax Information Network of the Income Tax Department, the income tax refunds being generated on processing of the income tax returns according to the latest income tax slabs by the assessing officers/ CPC-Bangalore are transmitted to the State Bank of India (SBI), CMP branch, Mumbai (Refund Banker) on the next day of processing for further distribution to taxpayers.
As of now, the income tax refunds are being sent via two modes, bank RTGS/NECS and bank paper cheque. To get the income tax refunds via either of these facilities, the taxpayers have to submit the correct communication bank account number and MICR code of bank branch if they want to receive the through RTGS/NECS.
According to an ET report, the individuals will be required to validate the bank account with the income tax department e-filing portal to receive the income tax refunds and the persons eligible for getting the income tax refunds will receive the refunds in the bank accounts which are linked to PAN following March 1, 2019. The bank account can either be a savings account, current account, cash account or an overdraft account.
The income tax department has itself urged the taxpayers to link bank accounts with PAN to get direct and secure income tax refunds. In case, the bank account is not linked with the PAN then an individual can validate the bank account with PAN through electronic verification code and net banking channels if the bank is integrated with the income tax e-filing portal.