How to Update Bank Account Details for Refund on Income Tax Portal

Updating bank account details on the Income Tax Portal is essential to ensure smooth refund processing. The Income Tax Department only issues refunds to pre-validated and active bank accounts linked with PAN. If the account is closed, changed, or unverified, refunds may fail or remain pending. By updating bank details correctly, taxpayers can avoid delays and ensure the refund reaches the right account. With the Income Tax Portal’s simplified interface, updating and validating your bank account has become a quick, secure, and entirely online process.

To update your bank account details for a refund, log in to the Income Tax Portal, go to the ‘Profile’ section, select ‘My Bank Accounts,’ and either add a new account or re-validate an existing one. Once verified through your bank or net banking, the updated account will automatically be eligible for a refund credit.

---

Table of Contents

• Importance of Updating Bank Account Details for Refund

• Step-by-Step Process to Update Bank Account on Income Tax Portal

• How to Pre-Validate Bank Account for Income Tax Refund

• Common Reasons for Refund Failure or Delay

• How to Check Refund Status on Income Tax Portal

• Updating Bank Details After Filing Income Tax Return

• How to Add Multiple Bank Accounts on Income Tax Portal

• Key Points to Remember While Updating Bank Details

• Role of Online ITR Filing Platforms like TaxBuddy

• Conclusion

• FAQs

Importance of Updating Bank Account Details for Refund

Updating bank account details on the Income Tax Portal is crucial for ensuring that income tax refunds are credited promptly and securely. The refund process is entirely electronic, and the Income Tax Department only transfers funds to accounts that are pre-validated and linked with the taxpayer’s PAN. If a bank account is inactive, closed, or not verified, the refund will either fail or remain pending indefinitely. Many taxpayers experience delays simply because their bank account details were outdated or entered incorrectly. Ensuring the correct IFSC code, account number, and ownership verification eliminates these issues. Keeping details up to date is especially important for individuals who have switched jobs, changed salary accounts, or opened new savings accounts. Accurate bank information ensures smooth credit of refunds without requiring manual intervention or reissue requests later.

Step-by-Step Process to Update Bank Account on Income Tax Portal

Updating your bank account on the Income Tax Portal involves a simple process that can be completed online.

• Visit the official Income Tax e-filing portal (www.incometax.gov.in) and log in using your PAN and password.
  

• From the dashboard, click on ‘Profile’ and select ‘My Bank Accounts.’
  

• You will see a list of existing bank accounts linked to your profile. To add a new one, click on ‘Add Bank Account.’
  

• Enter your bank details such as account number, IFSC code, account type, and bank name.
  

• The system automatically links the account with your PAN.
  

• Once added, the account will go through a pre-validation process, where it is verified by your bank or through net banking.
  

• After successful validation, the status will change to “Validated” and “EVC enabled” if eligible for refunds.
  

It is advisable to ensure that the name on the bank account matches exactly with the name as per PAN to avoid rejection or delays in validation.

How to Pre-Validate Bank Account for Income Tax Refund

Pre-validation is a mandatory step for receiving refunds directly into your account. This process confirms that the account belongs to the taxpayer and is active for transactions.

To pre-validate:

• Log in to the Income Tax Portal.
  

• Navigate to the ‘Profile’ section and select ‘My Bank Accounts.’
  

• If your account is not validated, click on ‘Re-Validate.’
  

• If your bank is integrated with the portal, validation occurs automatically within 1–2 days.
  

• For non-integrated banks, manual verification may be required using net banking credentials.
  

Once validated, the portal will display the status as “Validated” under your bank details. You can also receive an email and SMS confirmation once the validation is complete.

Pre-validation ensures your account is ready to receive refunds without failure. If you have recently changed your bank or IFSC code, it is advisable to pre-validate again to avoid discrepancies.

Common Reasons for Refund Failure or Delay

Refund failures are common when taxpayers neglect to verify their account details. Some typical reasons include:

• Incorrect IFSC code or account number entered during filing.
  

• Account closed or inactive at the time of refund issue.
  

• Mismatch between PAN name and bank account holder’s name.
  

• Bank not integrated with the e-filing portal.
  

• Pending validation or failed pre-validation due to incorrect data.
  

• Technical issues or delays in ECS credit by the bank.
  

If a refund fails, taxpayers can re-validate their bank account and submit a refund reissue request directly from the portal. Regularly checking refund status and validation can prevent such issues and ensure faster credit.

How to Check Refund Status on Income Tax Portal

To check the status of your income tax refund, follow these steps:

• Visit www.incometax.gov.in and log in using your credentials.
  

• Go to the ‘e-File’ menu and select ‘Income Tax Returns’ → ‘View Filed Returns.’
  

• Choose the relevant assessment year.
  

• The portal will display refund status such as “Refund Issued,” “Refund Failed,” or “Refund Pending.”
  

Alternatively, refund status can also be checked through the TIN NSDL website using your PAN and assessment year. If a refund has been issued, details like mode of payment, reference number, and date of credit are displayed. This helps taxpayers track the refund progress and take corrective actions in case of failure.

Updating Bank Details After Filing Income Tax Return

Even after filing the Income Tax Return, you can still update or correct your bank details. This is helpful when a refund fails or the account used during filing becomes inactive.

To update post-filing:

• Log in to the portal and navigate to ‘My Bank Accounts.’
  

• Add a new account and complete pre-validation.
  

• Once validated, go to ‘Refund Reissue Request’ under the ‘Services’ tab.
  

• Select the validated bank account for refund credit and submit the request.
  

The department will then process the refund to the new validated account. This feature ensures flexibility and convenience for taxpayers who experience refund delays after filing.

How to Add Multiple Bank Accounts on Income Tax Portal

The Income Tax Portal allows taxpayers to add and maintain multiple bank accounts under their profile. Each account must be pre-validated individually.

While filing the return, you can choose any validated account as your primary refund account. The primary account is where any approved refunds will be credited. You can also switch the primary account anytime before filing the return. This is particularly useful for individuals with separate accounts for salary, savings, or business transactions.

However, only one account can be marked for refund purposes at a time. Keeping multiple validated accounts ensures flexibility if one account becomes inactive or inaccessible.

Key Points to Remember While Updating Bank Details

• Always ensure that the bank account is active and linked to your PAN.
  

• Verify the IFSC code, especially if your bank has undergone mergers or branch changes.
  

• Only add accounts that belong to you. Refunds cannot be credited to a third-party account.
  

• Check validation status regularly, especially during refund season.
  

• Use the same name format as on PAN to avoid mismatches.
  

• If the account is jointly held, ensure the PAN of the primary holder matches the filing PAN.
  

• Re-validate your account if it was recently updated or if the validation failed earlier.
  

By following these guidelines, you can prevent refund rejections and receive your money without unnecessary follow-ups.

Role of Online ITR Filing Platforms like TaxBuddy

Platforms like TaxBuddy simplify the process of updating and validating bank details during ITR filing. With its AI-driven automation, TaxBuddy auto-fills information from PAN, Aadhaar, and Form 16, minimizing manual errors. The platform also verifies refund-related details before submission, ensuring accuracy.

For complex tax cases, such as multiple income sources or investment-linked refunds, TaxBuddy offers expert-assisted filing. Tax professionals review details, validate data, and ensure compliance with the latest CBDT rules. This reduces refund delays and improves accuracy.

TaxBuddy also provides post-filing assistance for refund reissue requests, failed validations, and refund tracking. By combining automation with expert support, it ensures a seamless refund experience for taxpayers.

Conclusion

Accurate and up-to-date bank account details are essential for receiving income tax refunds promptly. A small error or mismatch can lead to refund failures and unnecessary delays. The Income Tax Portal has made it easier than ever to add, edit, and pre-validate bank accounts online. Whether you are updating your details before or after filing, make sure the account is linked to your PAN and validated for refunds.

For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.

FAQs

Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy offers both self-filing and expert-assisted plans to cater to different user preferences. The self-filing plan is designed for individuals comfortable handling their own tax filing but still want AI-driven automation to pre-fill data from PAN, Aadhaar, Form 16, and Form 26AS. It helps in minimizing errors and saving time. The expert-assisted plan, on the other hand, connects users with certified tax professionals who review the details, ensure compliance with the Income Tax Act, and complete the filing on the taxpayer’s behalf. This is particularly useful for those with complex returns, multiple income sources, or investment-linked deductions.

Q2. Which is the best site to file ITR? The best site to file an Income Tax Return depends on the user’s needs and the complexity of their income. For basic filing, the official government portal (www.incometax.gov.in) is reliable and free. However, for individuals seeking a smoother and more intuitive experience, online platforms like TaxBuddy offer advanced features such as automated data fetching, AI-based error checks, and personalized guidance. TaxBuddy stands out for its expert-assisted plans and real-time validation tools, which ensure accuracy and prevent common filing mistakes that lead to notices or refund delays.

Q3. Where to file an income tax return? Income tax returns can be filed either through the official Income Tax Department portal or through trusted third-party platforms such as TaxBuddy. The government portal (www.incometax.gov.in) is suitable for users familiar with tax rules and manual data entry. However, platforms like TaxBuddy simplify the process with automation that imports Form 16 data, pre-fills income details, and guides users step by step through deductions, exemptions, and tax calculations. TaxBuddy also provides options to choose between self-filing or expert-assisted filing, making it a comprehensive solution for both individuals and businesses.

Q4. What happens if the refund account is not pre-validated? If the bank account is not pre-validated on the Income Tax Portal, the refund cannot be credited. The Income Tax Department uses pre-validation to confirm that the account belongs to the taxpayer and is active for electronic credit. Without pre-validation, the refund status will show as “Failed” or “Pending for Reissue.” Taxpayers are then required to log in to the portal, validate the account, and raise a refund reissue request. Pre-validation is thus an essential step to ensure refunds are deposited securely and without administrative delays.

Q5. Can a refund be issued to a joint account? Yes, a refund can be credited to a joint account, provided that the PAN of the primary holder of the account matches the PAN on the Income Tax Return. The account must also be pre-validated on the Income Tax Portal. It’s important that the primary holder of the joint account is the taxpayer, as refunds are never issued to third-party accounts. In the case of joint accounts with mismatched PANs, validation will fail, and the taxpayer will need to provide another individual account linked with their PAN.

Q6. How long does it take to receive a refund after updating bank details? After successfully updating and validating a bank account, it generally takes around 7 to 10 working days for the refund to be credited once the Income Tax Return is processed. The exact timeline may vary depending on the bank’s ECS (Electronic Clearing System) processing time and the volume of refund requests handled by the Centralized Processing Centre (CPC). Taxpayers can track the status of their refund on the portal using their PAN and assessment year. If the refund is delayed beyond this period, it is advisable to check the validation status or raise a refund reissue request.

Q7. Can bank details be changed after ITR is verified? Yes, taxpayers can change or update their bank details even after verifying their Income Tax Return. The portal allows users to add a new bank account and validate it at any stage. Once validated, they can go to the “Refund Reissue Request” section and select the new account for refund credit. This option is particularly useful when the earlier refund attempt failed due to an inactive or incorrect account. Taxpayers should ensure that the new account is active, linked with PAN, and validated before submitting the reissue request.

Q8. Why did my refund fail even after updating bank details? Refund failures can occur even after updating bank details due to several reasons. The most common issues include mismatched PAN-bank account names, incorrect IFSC codes, inactive or closed accounts, and technical errors during validation. In such cases, the Income Tax Department marks the refund as “Failed” or “Returned.” Taxpayers must re-validate the account to correct the discrepancies and then submit a refund reissue request through the Income Tax Portal. If the issue persists, expert assistance from platforms like TaxBuddy can help in identifying and resolving the problem efficiently.

Q9. How to know if my account is already validated for refund? To check the validation status of a bank account, log in to the Income Tax Portal and navigate to the “Profile” section. Under “My Bank Accounts,” you can view a list of linked accounts along with their current status — “Validated,” “Pending,” or “Failed.” If the account shows as “Validated,” it means it is ready to receive refunds. If the status shows “Pending” or “Failed,” the taxpayer needs to re-validate the account by providing accurate details or linking it through net banking. Regularly checking the validation status before filing ensures that refunds are not delayed due to unverified accounts.

Q10. Can I add more than one bank account for refund purposes? Yes, the Income Tax Portal allows taxpayers to add multiple bank accounts under their profile. Each account must be pre-validated separately to ensure it can receive refunds. However, at the time of filing the return, only one account can be selected as the primary refund account. Taxpayers can switch their preferred refund account anytime before submitting their return or while raising a reissue request. Maintaining multiple validated accounts offers flexibility, especially for individuals managing both personal and business transactions.

Q11. Do I need to submit any documents to update bank details? No physical documents are required to update or validate bank account details on the Income Tax Portal. The entire process is paperless and integrated with banking systems. Validation is done electronically through bank APIs or net banking, confirming ownership, account number, and IFSC details. However, taxpayers should ensure that their PAN is correctly linked with the bank account. If validation fails repeatedly, contacting the bank branch or updating PAN details in bank records is recommended before reattempting.

Q12. Can TaxBuddy help in refund-related issues or failed refunds? Yes, TaxBuddy provides end-to-end assistance for refund-related issues. The platform helps users identify the cause of refund failure, assists in re-validation of bank details, and guides them through the refund reissue process. For complex cases or repeated failures, TaxBuddy’s experts communicate with the Income Tax Department to ensure proper resolution. Additionally, TaxBuddy’s post-filing support includes follow-ups on refund status, response to CPC queries, and guidance on documentation if required. By combining automation with expert review, TaxBuddy ensures that taxpayers receive their refunds quickly and without stress.