How to Link Multiple Bank Accounts on the Income Tax Portal
- Dipali Waghmode
- 2 hours ago
- 9 min read
Linking multiple bank accounts on the Income Tax Portal ensures smooth tax filing, accurate income reporting, and error-free refund processing. The portal allows taxpayers to add, validate, and manage several accounts at once, which is essential for anyone earning interest from different banks or using separate accounts for salary, investments, and refunds. The process is straightforward but requires precise matching of PAN, mobile, and account details. When these details align correctly, the system validates the account instantly and enables refund nomination without delays or verification issues.
Once the process is completed, all linked bank accounts stay updated in the e-Filing profile, allowing easier ITR filing, seamless AIS matching, and accurate refund credit to the nominated account.
Table of Contents
Why Linking Multiple Bank Accounts Matters for ITR Filing and Refunds
Step-by-Step Process to Add and Validate Bank Accounts on the Income Tax Portal
Key Rules for Bank Account Validation Under the Income Tax Act
How to Nominate a Primary Bank Account for Income Tax Refunds
How Bank Account Linking Impacts AIS, Form 26AS, and Interest Reporting
Security Measures for Bank Account Linking on the Income Tax Portal
How TaxBuddy Helps Simplify Bank Account Management for ITR Filing
How to Link Multiple Bank Accounts on the Income Tax Portal
The portal provides a dedicated “My Bank Account” section under the taxpayer profile where all bank-related actions take place. Each account is added individually by entering the account number, account type, and IFSC code. The system matches the details with the bank’s records and verifies them through OTP-based validation. This step ensures that the account belongs to the taxpayer and can be safely used for refunds or EVC generation.
Why Linking Multiple Bank Accounts Matters for ITR Filing and Refunds
Most taxpayers use more than one account for salary, savings, trading, or loan EMIs. Linking these accounts on the portal helps ensure every source of interest income is reported accurately. It also prevents mismatches between AIS data and ITR, which is a common trigger for automated notices. When multiple accounts are validated, a taxpayer can easily switch refund nominations, manage inactive accounts, and avoid refund delays due to mismatched or unverified banking details.
Step-by-Step Process to Add and Validate Bank Accounts on the Income Tax Portal
The process begins by logging into the e-Filing portal using PAN and password. After entering the dashboard, the “My Profile” section leads to the “My Bank Account” option. Selecting “Add Bank Account” opens a form where the account number, type, and IFSC must be filled in. After submission, the portal sends an OTP to the Aadhaar-linked or registered mobile number. Once the OTP is verified, the status changes to “Validated.” Repeat the same steps for each account that needs to be added.
Key Rules for Bank Account Validation Under the Income Tax Act
Key rules for validating a bank account under the Income Tax Act revolve around identity matching and account ownership. The portal verifies every account against the bank’s records to ensure that the details belong to the same taxpayer. The PAN in the bank’s database must be identical to the PAN registered on the Income Tax Portal; even minor inconsistencies, such as an old PAN not updated with the bank, will cause validation failure. The name recorded with the bank should also match the income tax profile, including spelling, the order of words, or the use of initials. The mobile number linked to the bank account plays an important role because it is often used for OTP-based authentication during the validation step. If the registered mobile number is inactive, outdated, or different from the one in the e-Filing profile, the system may not complete the verification.
Only active and operational accounts can be linked. Dormant, frozen, or recently closed accounts will not pass the validation check. Each linked bank account must also be mapped to the taxpayer’s PAN at the bank level; accounts opened without a PAN, or accounts where a PAN was added later but not updated properly in the bank’s system, may fail validation. The rules also allow joint accounts to be linked, but only if the taxpayer’s PAN is officially recorded as a primary or secondary holder. If the PAN is missing from the joint account records—even if the taxpayer is listed as a joint holder—the account will not be accepted for validation or refund nomination. These checks are enforced to ensure secure refund processing, prevent incorrect credit transfers, and maintain accuracy in tax-related financial data.
How to Nominate a Primary Bank Account for Income Tax Refunds
After adding and validating multiple accounts, the taxpayer can choose any of them as the refund-receiving account. The nomination is completed through a simple toggle option in the bank account list. Only validated accounts can be nominated. While more than one account can be nominated, the system credits the refund only to the preferred primary option selected during return filing.
Common Validation Errors and How to Fix Them
Errors usually arise due to PAN mismatches, incorrect IFSC entries, inactive accounts, or differences in name spelling between the bank and income tax records. Another frequent issue occurs when the mobile number linked to a bank account is outdated, preventing OTP validation. Correcting these details with the bank branch or updating the income tax profile typically resolves the issue. Validation can be retried after the corrections are made.
How Bank Account Linking Impacts AIS, Form 26AS, and Interest Reporting
The tax system collects information from banks and financial institutions, and the linked accounts help ensure accurate reflection of interest income in AIS and Form 26AS. If a taxpayer fails to link an account from which interest is earned, the information may still appear in AIS but remain unmatched in ITR, increasing the risk of automated adjustment notices. Keeping all bank accounts linked ensures smooth reconciliation and accurate reporting during filing.
Managing Closed or Inactive Bank Accounts on the Portal
Closed or dormant accounts should be removed from the portal to prevent mismatches or refund processing failures. The system allows users to delete any non-active account directly from the bank account list. Removing such accounts also ensures cleaner AIS reconciliation and avoids validation attempts for accounts that no longer exist.
Security Measures for Bank Account Linking on the Income Tax Portal
The portal uses encrypted communication, PAN-based verification, and OTP authentication to protect account information. Validation takes place through secure channels, and no banking credentials such as net banking passwords are required. The system checks account ownership with the bank’s backend, ensuring the profile stays protected from unauthorized use.
Can Multiple Bank Accounts Be Used for EVC and Refunds?
Multiple accounts can be linked and validated, but only one of them can have the EVC feature enabled at a time. For refunds, the taxpayer can nominate multiple accounts, yet the refund is credited only to the selected primary option. EVC settings can be switched when needed, with a quick confirmation prompt to finalize the change.
When to Update or Modify Bank Details on the Portal
Details should be updated whenever a taxpayer changes a mobile number, shifts to a new bank account, closes an existing one, or notices mismatches between portal and bank records. Updating information prevents validation failures during ITR filing and ensures refund credit without delays. Modifying details is straightforward and can be done anytime during the year.
How TaxBuddy Helps Simplify Bank Account Management for ITR Filing
Platforms like TaxBuddy streamline the entire filing journey by automatically checking refund-eligible accounts, ensuring validated details appear correctly in the ITR, and alerting users if any account does not meet the requirements for refund nomination. This prevents common errors and avoids delays caused by mismatched bank information during tax filing.
Conclusion
Keeping multiple bank accounts linked and validated on the e-Filing portal is essential for accurate reporting and timely refunds. The process is simple, but maintaining updated banking details ensures seamless tax filing each year. 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
Q. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy provides two flexible modes of filing so taxpayers can choose what fits their needs. The self-filing plan works best for individuals with straightforward income, such as salary or simple interest earnings. The system automatically reads Form 16, Form 26AS, and AIS to pre-fill data, reducing the chances of missing information. For more complex cases involving capital gains, business income, rental income, or multiple deductions, the expert-assisted plan offers a detailed review by qualified tax professionals. This ensures the return is prepared, checked, and filed with precision, along with post-filing assistance if a notice occurs.
Q. Which is the best site to file ITR? The government’s official e-Filing portal is the statutory platform for filing returns. It supports all ITR forms and integrates with PAN, Aadhaar, Form 26AS, and AIS databases. However, many users prefer platforms like TaxBuddy because of automated data import, AI-driven checks, expert validation, and a cleaner interface. These additional features help reduce filing errors and improve refund accuracy, especially for those with multiple income sources.
Q. Where to file an income tax return? An income tax return can be filed through the official Income Tax Portal, which is the central hub for all compliance activities under the Income Tax Act. Taxpayers may also choose compliant platforms like TaxBuddy that offer guided workflows, automated tax calculation, and error detection. These platforms simplify the process and help ensure all income streams are correctly reported before submission.
Q. Can more than one bank account be linked on the Income Tax Portal? Yes, the portal allows linking of multiple bank accounts, making it convenient for taxpayers who use different accounts for salary credits, investments, EMI payments, or trading activities. Each linked account must be mapped to the taxpayer’s PAN and validated through the system. This ensures proper AIS reporting, accurate interest income matching, and error-free refund eligibility.
Q. How many bank accounts can be added for refund purposes? Several validated accounts can be nominated for refunds, but the system credits the refund only to the primary account chosen by the taxpayer. This primary nomination can be changed at any time before the ITR is processed. Keeping more than one account nominated is useful for those who maintain separate accounts for savings, salary, or investments, but only the primary option receives the final credit.
Q. What happens if a bank account fails validation on the portal? If validation fails, it typically means the bank’s records do not match the details in the income tax profile. Mismatches often occur due to differences in name format, incorrect PAN mapping, outdated mobile numbers, or inactive accounts. Once the correct information is updated with the bank or portal, the validation process can be retried. This step is essential because only validated accounts can be used for refunds and EVC generation.
Q. Is Aadhaar mandatory for bank account validation on the Income Tax Portal? While Aadhaar-linked mobile numbers are widely used for OTP verification, Aadhaar itself is not the only method for validation. The portal also allows verification using the mobile number registered in the e-Filing profile. However, having Aadhaar linked to a bank account often speeds up the validation process, making the user experience smoother.
Q. Can EVC be enabled for multiple bank accounts at the same time? EVC activation is limited to one account at a time because it acts as a security layer for verifying ITRs and other submissions. Users can switch EVC access between accounts whenever required. This flexibility helps individuals who maintain separate accounts for personal and investment purposes but want to change the verification method occasionally.
Q. What details must match for successful validation of a bank account? The system cross-checks the PAN, name spelling, and mobile number with the bank’s database. Even minor differences such as initials, spacing, or variations in the order of names may result in a validation error. Matching these details ensures the account belongs to the taxpayer and helps support secure refund processing and identity authentication.
Q. How does bank account linking impact refund processing? Income tax refunds are released only to validated and nominated bank accounts. If the selected account is not validated, the refund cannot be credited. Linking all active accounts helps ensure the correct bank details are always available, reducing delays caused by mismatches or unverified information. It also supports accurate EVC verification during the e-Filing stage.
Q. Should closed or inactive bank accounts be removed? Closed or dormant accounts should be removed immediately to prevent mismatches with AIS or Form 26AS. Keeping inactive accounts on record may lead to confusion during refund selection or create inconsistencies in tax records. Removing such accounts keeps the profile clean and ensures only active, valid accounts are available during ITR filing.
Q. Can dividend and interest income from multiple banks trigger a mismatch notice if accounts are not linked? Yes, AIS collects information from all banks and financial institutions. If interest or dividend income appears in AIS but the related account is not linked, the taxpayer may fail to report that income in the ITR, resulting in a mismatch. This can trigger automated adjustments or queries under Section 143(1). Linking all bank accounts helps ensure interest and dividend data flows accurately into AIS and can be reported correctly in ITR.
