- Delays in income tax refunds can occur if there is a mismatch between the name on your bank account and your PAN.
- To prevent delays, ensure that your bank account details match the name on your PAN card.
- Provide your bank with a copy of your PAN card and other necessary documents to update your account name.
- Hindu Undivided Families (HUFs) should be cautious and ensure name consistency between their PAN card and bank account.
- If your refund is delayed due to a mismatch, you may be eligible for interest under Section 244A of the Income Tax Act (0.5% per month).
It’s important to be aware that there can be delays in receiving your income tax refund due to a mismatch between the name on your bank account and your PAN (Permanent Account Number). This means that even if you’ve successfully filed your income tax return, you may experience delays if there is a difference between these two.
The Income Tax Department has strict rules in place and will not issue a tax refund if there is a name mismatch between your PAN and bank records. Even minor variations, such as missing initials or differences in spelling, can cause this issue.
To avoid delays in getting your income tax refund, make sure your bank account details match the name on your PAN card. You can do this by giving your bank a copy of your PAN card and other necessary documents. When your bank account information matches your PAN card details, it helps ensure a smoother process for your tax refund.
Why Does This Happen?
The Income Tax Department deposits refunds to your bank account. To ensure security and accuracy, they verify the name on your bank account with the name on your PAN card. Even small differences, like a missing middle initial or a different spelling, can become the reason for delays.
What Can You Do?
If you think there’s a name mismatch, here are your options:
- Update Your Bank Account: Visit your bank and provide a copy of your PAN card and any other required documents to make sure your account name matches your PAN exactly.
- Change Your PAN Name: File a correction form with the Income Tax Department to update the name on your PAN card.
Who Else Needs to Be Cautious?
Hindu Undivided Families (HUFs) need to be extra careful. Both the PAN card and bank account for the HUF should have the same name, including the term “HUF.”
