From this assessment year, the income tax department has brought in a new income tax refund rule without which taxpayer will not be able to get Income tax refunds.
Taxpayer needs to link PAN No. with Bank Account.
The taxpayer can check status of PAN – Bank Account linkage,whether it is completed or not. Taxpayer can go to the income tax department’s e-filing portal, click on the profile setting section and then go to “Prevalidate Your Bank Account” where taxpayer can check whether bank accounts are already validated or not.
To prevalidate bank account, taxpayer need to give bank account number, IFSC code, bank name and mobile number that is linked to the bank account.
Previous the requirement was only to link your PAN (Permanent Account Number) with Aadhaar card to file income tax returns (ITR) correctly.
But now the I-T department has started issuing income tax refunds only through electronic mode.
The new rule means that the previous practice of sending tax refund cheques through Speed Post has been stopped. This is also beneficial for Taxpayer as sometimes these cheques used to get delayed.