Income Tax Returns: Pre-validating your bank account can help expedite refunds

ITR filing last date: Ensure that you pre-validate your bank account while filing returns to avoid refund delay, failures

The income tax return-filing (ITR) season is in full swing, and many of you might have dutifully filed your ITRs.

If you have paid more tax than what you are liable to, either by way of advance tax or TDS (tax deducted at source), you are probably awaiting a refund. For that, there's one crucial box you need to check — pre-validating your bank account.

Why pre-validate 

Bank account pre-validation is a crucial step in ensuring the efficient processing of income tax refunds. It involves confirming that a taxpayer’s bank details are accurate and linked to their Permanent Account Number (PAN) on the income tax department's e-filing portal.

Pre-validating your account is critical, especially in cases where bank details (account number, IFSC, branch etc) have changed due to mergers or acquisitions. Valid bank accounts might also become invalid due to changes in the IFSC or account number.

Ideally, this process should be done before filing a return, guaranteeing prompt disbursal of funds and peace of mind.

How to pre-validate 

Login to the e-filing portal (incometax.gov.in) by using your credentials.

Go to ‘My Profile’ and select ‘My Bank Account’ from the left pane.

Manage bank details: under the 'My Bank Account' tab, you can add a new bank account or update an existing one. Fill in the required details, such as bank name, account number, Permanent Account Number (PAN), IFSC, and other required information. Ensure these details match exactly with your bank records.

Submit for verification: post submission, the portal will verify your details with your bank.

Also read: ITR Filing 2024 last date: Know the importance of tax filing due date, consequences of delay, penalties and more

How to check if your bank account is pre-validated

Once you have pre-validated, you can check the status by following the steps mentioned below:

Login to the e-filing portal, go to ‘My Profile’ and select ‘My Bank Account’ from the left pane. The screen will show the list of bank accounts that are pre-validated and the ones you have selected for receiving income tax refunds.

Why pre-validation is important

By pre-validating, you eliminate potential hurdles that might delay your refund. The income tax department can directly deposit your refund into your pre-validated bank account, reducing processing time. Also, incorrect or non-validated bank details can often lead to refund failures. Pre-validation ensures that the information provided is accurate, preventing any rejections by the bank.

Pre-validation isn’t just a procedural step — it is a compliance requirement under income tax laws. Adhering to this requirement is essential for avoiding complications.

The process adds a layer of security, ensuring that the refund is deposited into the rightful owner's account, linked to the relevant PAN. Once your account is pre-validated, you can easily track the status of your refund through the e-filing portal, and see when you may expect your refund.

Also read: Your guide to filing income tax returns for FY 2023-24

Benefits beyond timely refunds

Pre-validating your bank account enhances the overall security of the refund process, reduces errors, and ensures you're not in violation of income tax laws. It streamlines the electronic credit system (ECS) for refunds, providing an end-to-end, hassle-free, digital experience for taxpayers.

Additionally, individual taxpayers can use a pre-validated bank account to enable an Electronic Verification Code (EVC) for the e-verification of returns.

Put simply, bank account pre-validation is a streamlined, secure, and compliant approach that ensures taxpayers can manage their returns and refunds more efficiently with fewer complications.