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Pan name and bank a/c name differ

Shamita (Learner) (410 Points)

13 October 2012

If the name of the asseessee differs in her PAN from her bank a/c, will this create problem in income tax refund.

Eg.: If name on PAN is "Shamita" and in bank name is "Shamita Aggawal", can department return the refund cheque saying that bank name differs with the PAN.

Please reply.

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12 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 13 October 2012

yes, if pan data misses your surname then bank will not accept the cheque in that account,

fix any one name for you.

if pan data is correct then visit the bank and change the name, and as proof submit th pan copy.

if bank account name is correct, then file 49A for amendmend in pan, and submit basnk pass book as copy as document,

1 Like

SANJEEV (CA Final (B.COM)) (189 Points)
Replied 13 October 2012

Chill

In Case of refund Bank can not denay to Clear the Money. On the ground that Surname is not mention in Cheque.

1 Like

(Guest)

Also, If the Income Tax Return is filed online than

MICR Code of the Bank & Bank Account No. would be given if this the the case the It Refund will be

Credited to the Bank Account.

1 Like

CA.Vinita Gupta (Deputy Manager- Finance) (2918 Points)
Replied 14 October 2012

As per my opinion there will be no problem because the bank Account will be identiied witrh the PAN No, Spelling mistakes or Surname missing will not cause anty problem

1 Like

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 14 October 2012

but i doubt that bank account is updated with pan, coz if updated with pan , bank will not accept the pan which is not matching with name and style of account.

department will not put headache while issuing the cheque, but encashment will be issue for the assessee.

SANJEEV (CA Final (B.COM)) (189 Points)
Replied 14 October 2012

@ U S Sharma - If you have not mention Full name in cheque It does not mean that bank reject the same. Bank require Strong reason to reject the same and more over A/c payee Cheques does not have such limitations.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 14 October 2012

@ Sanjeev,

after 2009 bank refuse the cheques in abbreviated names even, say you are sanjeev bhargav and cheque is S bhargav, they refuse to encash it, saying that there may be 1000 S bhargav wh are not sanjeev,

similer without surname you can encash the cheque of shamita( ghoshal/ barnwal/modi/todi~~~) so name and style is the thing to check the genuine ness

if the refund is NEFT, then the bank account no is enough and it does not bother to the name, the situation i mentioned only in case of paper cheque.

Shamita (Learner) (410 Points)
Replied 14 October 2012

I have applied for refund through cheque with the department, but not yet given the PAN in the bank.

In case I have opted for ECS, I doubted that department may not have done ECS as the name differs.

As per Mr. Vivek Bhinde, in ECS, only MICR and Bank a/c name is required. But this doesn't seem to me correct. If such is the policy, then one can give bank account details of some other person.

G S Sudarshan (Partner) (47 Points)
Replied 15 October 2012

When bank processes the cheque for presenting in clearing they check the account no and name of the payee. In this case bank will not accept the cheque as there is a material difference. However, bank will once again refer to KYC documents submitted by the account holder at the time of opening account. If they are satisfied with the verision given by the account holder, they may accept but the possibility of rejecting them is more. Therefore I agree with Mr U.S.sharma and take steps as told by him

G S Sudarshan (Partner) (47 Points)
Replied 15 October 2012

What happened to reply I posted a few minutes ago

Nikunj (CA) (54 Points)
Replied 15 October 2012

no at all problem for refund but keep same name in all the document thats better

Jasdeep Singh Randhawa (2 Points)
Replied 07 August 2018

I got refund cheque from Income Tax, and there is speccling mistake in Surname. It should be "Randhawa" but it has been put as "Ranfhawa". It has proper PAN number and account number printed on cheque. Shall i go and enash the cheque. What is return procedure of cheque to Income Tax Authority.