How To Link Pan Card With SBI Account

• PAN card is a proof of identity and it guarantees KYC compliance in a bank account along with the proof of address.
• SBI Bank may identify duplicate bank accounts in the same bank, and prevent duplication of accounts in other branches as well.
• Income tax department would be able to track your expenditure against earned income, which is a useful tool for raising tax-payer queries.
• Remittance of any amount exceeding Rs. 50,000/- into your bank account requires PAN number or Form 60. It is therefore advisable to have a PAN number linked to your operating account in order to overcome all PAN related issues with the bank.
• In case of fixed deposits, if you have not linked your PAN with a bank account, TDS will be deducted at 20% instead of 10% on income on these deposits, which is above the taxable limit.

How do I link my PAN with my SBI Account?

There are a few different ways to link your PAN with your SBI Account. 

Linking PAN Card with the SBI Account online

• Visit the SBI internet banking website
• Login with your Customer ID and Password
• Once you have logged in to the page, on the left-hand panel, choose ‘Profile’ and ‘Pan Registration’ under that.
• You need to enter your profile password before you can be redirected to PAN registration page
• Here, select the relevant Transaction Account and enter your PAN details and submit
• Once you have submitted, an OTP will be generated and sent to your registered mobile number
• Enter the OTP and hit ‘Submit’
• Your request will be forwarded to the branch for processing. Branch will take up to 7 days to process your request
• You will receive a message on your registered mobile number once the linking is successful
• If you are not yet registered for Internet Banking, you can do so online using your ATM cum Debit Card details.

Linking of PAN to your SBI Account through the Branch

• Visit the nearest SBI Branch
• Bring a copy of your PAN Card
• Fill out a Request Letter
• Submit a copy of your PAN Card with the above letter
• The linking will be done by the branch after necessary verification
• You will receive an SMS regarding the status of a link on your registered mobile number

What is the importance of PAN numbers for taxpayers?

PAN is an electronic system through which all tax-related information is recorded against a single PAN number for a person / company. This acts as the primary key to information storage, and is shared across the country. No two tax paying entities can therefore have the same PAN. Financial institutions and agencies require PAN, too. PAN Card is issued to individuals, businesses, Indians who are not resident or whoever pays tax in India.

PAN allows the department to connect all "individual" transactions of a person within the department. These transactions include tax payments, TDS / TCS credits, revenue returns, transactions listed, correspondence etc. Therefore, PAN acts with the tax department as an identifier for the "individual."

PAN has been developed to facilitate the linking of various records, including tax payment, assessment, tax demand, tax arrears etc. relating to an assessed individual, to facilitate the easy retrieval of information and to facilitate the matching of information relating to investment, the raising of loans and other business activities by taxpayers collected from various sources, both internal and external.

PAN is mandatory for all tax paying citizens. It has to be mentioned on your income tax returns. Here are some of the applications of the PAN number:

• For payment of direct taxes
• To file income tax returns
• To avoid deduction of tax at higher rate than due
• To enter into specific transaction such as:
• Sale or purchase of immovable property valued at Rs 5 lakh or more
• Sale or purchase of a vehicle other than a two wheeler
• Payment to hotels or restaurants an amount exceeding Rs 25,000 at any one time
• Payment in cash an amount exceeding Rs 25,000 in connection with travel to any foreign country
• Payment of an amount of Rs 50,000 or more to the Reserve Bank of India for acquiring bonds
• Payment of an amount of Rs 50,000 or more to a company or an institution for acquiring bonds or debentures
• Payment of an amount of Rs 50,000 or more to a company for acquiring shares
• Any mutual fund purchase
• Deposit exceeding Rs 50,000 with any single banking institution in 24 hours.
• Payment exceeding Rs 5 lakh for purchase of bullion and jewellery

By mentioning your PAN number on these transactions, the government is able to keep track of the financial transactions you have carried out in a year and levy corresponding income tax on a citizen.

PAN & TDS

TDS is Tax Deducted at Source. It is the tax deducted from incomes such as rent, salary, commission, professional fees, interest, etc. It is deducted by the person making the payment before it is credited to the beneficiary. This TDS is then deposited to the Government by the deductor against the deductee’s PAN number.

Your TDS is linked to your PAN number. This allows you and the government to conveniently track the tax that you have paid to the income tax department. You can check your TDS statement using Form 26AS.

There are two ways to check your TDS status; PAN Card is an important input criterion to check your TDS status online. You can either check the status through the TDSCPC Portal or through the Income Tax e-Filing Portal. Both these portals require your PAN Number.