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Restricted Refund- PAN Bank Account Linkage on the Income Tax Website.

Sarun kumar.k.s (Chartered Accountant) (53 Points)

12 June 2023

Problem: The bank account was added and validated, and it indicates Validated and EVC Enabled, and *Restricted Refund*.

My Query
1. What will be the reason for this restricted refund ?
2. How can the above problem be resolved?

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16 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180013 Points)
Replied 12 June 2023

1. Due to minor difference in data as per ITD and that of Bank. E.g. mobile no., email address, spell difference in name etc.

2. Refund upto Rs. 50K will be available without any change. Otherwise get the difference rectified at Bank site.

2 Like

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CA Raj Doshi (Practising CA) (8924 Points)
Replied 13 June 2023

Sir, can you please share circular where 50k limit is mentioned???

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180013 Points)
Replied 13 June 2023

No need of circular...

After login go to 'My Bank Accounts'

For the account showing 'Restricted Refund' -Click the 3 dots beside the acct

# Select -- View Bank details --- it will show reason as “Refund can be credited only up to <50K> due to name mismatch between Bank account & PAN.

The reason and limits may change for different accounts !!

3 Like

CA Raj Doshi (Practising CA) (8924 Points)
Replied 13 June 2023

Thankyou sir. Was unaware.

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180013 Points)
Replied 13 June 2023

You are welcome.

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(Guest)

Dear Dhirajlalji,

On 27 July 23, the restricted refund remark shows as below. I guess the limit is 50Lakh. Where you mentioned 50 K, please advise.

"Remark: Refund can be credited only up to <50L> due to name mismatch between Bank account and PAN. Please update the name in PAN or with bank.EVC can be enabled for this bank account."

I appreciate your support as usual! thanks :)

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180013 Points)
Replied 22 July 2023

It is case specific; in your case the defect must have been minor, so limit is 50L. In some cases, it is not mentioned anything.

1 Like

(Guest)

Got it, thanks :)

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180013 Points)
Replied 22 July 2023

Most welcome.

Musrath Shaik (175 Points)
Replied 22 July 2023

The status of "Restricted Refund" in your bank account validation for Income Tax Return (ITR) processing typically indicates that the refund amount, if any, will be credited only to the validated bank account and not to any other account. This measure is taken by the tax authorities to prevent fraudulent activities and to ensure that the refund reaches the correct taxpayer.

Here's what you need to know about the "Restricted Refund" status and how to resolve any issues related to it:

Reason for Restricted Refund:
- The primary reason for the "Restricted Refund" status is that the tax authorities want to ensure that the refund amount is credited to a legitimate bank account owned by the taxpayer. By validating the bank account, they ensure that the refund is directed to the correct person and not to any unauthorized account.
- This status can also be applied when there have been instances of identity theft or fraudulent refund claims associated with the taxpayer's account in the past.
- The "Restricted Refund" status is a security measure to safeguard taxpayer funds and prevent misuse.
Resolving the Restricted Refund Issue:
- If your bank account is already validated and you are seeing the "Restricted Refund" status, there is typically no action required from your end. The status is a standard message indicating that the refund will be credited only to the validated bank account.
  For further more detailed information on this topic visit: ITR: Income Tax Return
  
  To read more such trending content, visit Swipe Blogs.

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Kasiraj Gurusamy (29 Points)
Replied 03 August 2023

My SBI account is validated. But status is Refund Restricted with the message "Refund can be credited only up to <50L> due to name mismatch between Bank account and PAN. Please update the name in PAN or with bank. EVC can be enabled for this bank account."

In another reply above

"Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (156835 Points) Replied 12 June 2023 1. Due to minor difference in data as per ITD and that of Bank. E.g. mobile no., email address, spell difference in name etc. 2. Refund upto Rs. 50K will be available without any change. Otherwise get the difference rectified at Bank site.

Read more at: https://www.caclubindia.com/forum/restricted-refund-pan-bank-account-linkage-on-the-income-tax-website--600064.asp#reply"

My bank account and Pan has same name G Kasiraj (No mismatch). As my refund is only 7000, will it be paid even with restricted refund status? Please clarify. Thanks.

Read more at: https://www.caclubindia.com/experts/details.asp?mod_id=2906339

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180013 Points)
Replied 03 August 2023

Is name spelled same in bank account and Aadhar?

Whether mobile no is same in bank account, Aadhar and PAN?

If yes, you will get refund in the account.

Syed Imran (2 Points)
Replied 04 August 2023

Dear Dhirajlalji, On 30 July 23, the restricted refund remark shows as below. I guess the limit is 50Lakh. Where you mentioned 50 K, please advise. "Remark: Refund can be credited only up to <50L> due to name mismatch between Bank account and PAN. Please update the name in PAN or with bank.EVC can be enabled for this bank account." I appreciate your support as usual! thanks :)

Will i get the refund of 1 Lakh or it needs to be corrected to get the Refund?

Kasiraj Gurusamy (29 Points)
Replied 04 August 2023

Yes. Name and phone number are same in Bank, Pan & Aadhar. SBI account is validated and EVC enabled but with restricted refund and red icon against the email. Remark says "Refund can be credited only up to <50L> due to name mismatch between Bank account and PAN. Please update the name in PAN or with bank.EVC can be enabled for this bank account". My refund is only 7000. Hope it will be paid to this account. Thanks for your reply.