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Why Are Bank Details Required in an ITR?

Bank-account details in an Income Tax Return serve two main purposes:

1. To disclose the taxpayer's bank accounts held in India during the relevant financial year.
2. To identify an account into which any income-tax refund may be credited.

For AY 2026-27, the notified ITR forms require details of all bank accounts held in India at any time during FY 2025-26, except dormant accounts. At least one account must ordinarily be selected for refund credit.

Where more than one account is selected, the Centralised Processing Centre may credit the refund to any one of the successfully validated accounts after processing the return.

Which Income-tax Law Applies?

Returns for FY 2025-26 continue to be filed for AY 2026-27 under the Income-tax Act, 1961, even though they are filed after the Income-tax Act, 2025 came into force. The bank-detail fields discussed in this article are therefore based on the notified AY 2026-27 ITR forms.

Which Bank Accounts Must Be Reported?

For AY 2026-27, report all bank accounts held in India at any time during FY 2025-26, other than dormant accounts. The information generally includes:

• IFSC of the bank branch;
• bank name;
• account number;
• account type; and
• whether the account is selected for refund credit.

Because the form refers to accounts held “at any time” during the year, an account that was closed during FY 2025-26 should generally still be disclosed if it was operational during part of the year. However, a closed, frozen or inactive account should not be selected for receiving a refund.

Disclosure, Validation and Refund Nomination Are Different

These three actions are related but are not the same.

What Is an IFSC?

IFSC stands for Indian Financial System Code. It is an 11-character alphanumeric code that uniquely identifies a bank branch participating in electronic payment systems.

Its structure is:

• first four characters: bank identifier;
• fifth character: zero;
• last six characters: branch identifier.

For AY 2026-27, the ITR validation rules require the IFSC entered in the bank-details section to match the RBI database or the applicable GIFT IFSC codes. An incorrect, discontinued or outdated IFSC may result in a validation error or refund failure.

Where Can You Find the Correct IFSC?

• a recent cheque leaf;
• an updated passbook or bank statement;
• the bank's official website or mobile-banking application;
• the RBI's IFSC and MICR search facility; or
• direct confirmation from the bank branch.

Find your IFSC

What Is a MICR Code?

MICR stands for Magnetic Ink Character Recognition. It is a nine-digit numeric code traditionally used to identify a bank branch for cheque clearing and certain ECS transactions.

The digits represent:

• first three digits: city;
• next three digits: bank;
• last three digits: branch.

The MICR code is usually printed near the bottom of a cheque leaf.

Is MICR Required in the ITR?

The notified AY 2026-27 ITR bank-account schedule asks for the IFSC, not the MICR code. MICR may still help identify a branch or complete an ECS mandate, but it should not be entered in place of the IFSC.

How to Add or Edit Bank Details in myITreturn

Before You Begin

Keep the following information ready:

• current bank account number;
• correct and active IFSC;
• bank name and branch;
• account type;
• confirmation that the account is active;
• confirmation that PAN is linked with the account; and
• the account that you prefer for receiving a refund.

Step 1: Open the Bank Details Section

Log in to myITreturn and open the return being prepared for AY 2026-27. Proceed to the Bank Details section.

Step 2: Review the Existing Accounts

Check every bank account already listed. Verify:

• whether the account belongs to the taxpayer;
• whether the account number is complete and correct;
• whether the IFSC is current;
• whether the bank or branch has merged or changed;
• whether the account remains active; and
• whether any account is duplicated.

Step 3: Add a Bank Account

Select Add Bank Account and enter:

• IFSC;
• bank name;
• account number;
• account type; and
• refund-credit preference.

Where the bank name and branch are automatically populated from the IFSC, confirm that the displayed information matches the actual branch.

Step 4: Edit Incorrect Details

Use the Edit option where the account number, IFSC or account type is incorrect.

A new IFSC may be necessary where:

• the bank has merged;
• the branch has been shifted;
• the account has been migrated;
• the branch code has changed; or
• the earlier IFSC has been discontinued.

Step 5: Remove Duplicate or Irrelevant Entries

Remove duplicate records and accounts that do not belong to the taxpayer.

A dormant account may be excluded under the notified ITR instructions. However, an account merely unused for a few months should not be assumed to be dormant without checking its status with the bank.

Step 6: Select an Account for Refund Credit

Select at least one active account for refund credit. Prefer an account that:

• is linked with the taxpayer's PAN;
• is in the taxpayer's correct name;
• is active and capable of receiving electronic credits;
• has a current IFSC; and
• has already been validated on the Income Tax e-Filing portal.

Step 7: Save and Continue

Save the details and continue with the return.

Before submission, review the final ITR preview to ensure that:

• all reportable accounts are included;
• the account numbers are correct;
• IFSC has not been confused with MICR;
• a closed account has not been selected for refund; and
• at least one suitable refund account is marked.

How to Pre-validate a Bank Account on the Income Tax Portal

Step 1: Open My Bank Account

Log in to the Income Tax e-Filing portal and go to:

The page displays added, failed and removed bank accounts.

Step 2: Add the Account

Select Add Bank Account and enter:

• bank account number;
• account type;
• holder type; and
• IFSC.

The bank name and branch are populated using the IFSC.

Step 3: Submit the Validation Request

Select Proceed to E-Verify and complete the available verification method.

After submission, the account may initially show Validation in Progress. The portal sends the details to the bank for verification.

Step 4: Check the Validation Status

The account may show a status such as:

• Validated;
• Validation in Progress;
• Failed; or
• Validation Cannot Be Done.

The Income Tax portal's FAQ states that the validation status may take approximately 10-12 working days to update, although actual time can vary.

Step 5: Nominate the Account for Refund

After the status changes to Validated, enable the Nominate for Refund toggle.

Multiple validated accounts may be nominated. However, only one validated account is needed for receiving a particular refund.

Which Accounts Can Be Pre-validated?

The portal currently permits the following account types for refund validation:

• savings account;
• current account;
• cash-credit account;
• overdraft account; and
• NRO account.

Why Does Bank Validation Fail?

The e-Filing portal provides a Re-Validate option for failed accounts. Bank details can be corrected before resubmitting the validation request.

What Happens if the Refund Is Sent to an Invalid Account?

A refund may fail where the selected account:

• has been closed;
• has become inactive;
• is not linked with PAN;
• has an account-holder-name mismatch;
• has an incorrect account number;
• uses an outdated IFSC; or
• cannot accept the electronic credit.

After correcting or replacing the bank account, submit a refund-reissue request through:

Select the relevant refund record, choose a validated bank account and complete verification. Only validated accounts are ordinarily displayed for online selection.

Special Rule for Non-residents

Applicable ITR forms allow a non-resident who does not have an Indian bank account to furnish details of a foreign bank account for receiving a refund. The form may require details such as:

• SWIFT code;
• bank name;
• country of location; and
• IBAN.

Common Mistakes to Avoid

Conclusion

Correct bank details are required both for complete ITR disclosure and for the successful credit of an income-tax refund.

For AY 2026-27, taxpayers should report all Indian bank accounts held during FY 2025-26, excluding dormant accounts, and select at least one active account for refund credit. The IFSC must be current and should not be confused with the MICR code.