Fix type of account error in ITR filing with this step-by-step guide. Learn causes, solutions, and how to validate your bank account for a seamless refund process.
Filing your Income Tax Return (ITR) isn’t just a yearly task—it’s your financial footprint, a record of transparency, and the key to unlocking refunds. But one error that trips up thousands of taxpayers each year? The type of account error during ITR filing.
This seemingly small mistake—choosing the wrong bank account type—can stall your income tax refund, trigger validation failures, and drag you into a maze of re-filing, re-validation, and unnecessary delays.
In this detailed guide, you’ll learn exactly what the type of account error is, why it happens, how to fix it, and how to avoid it altogether by validating your bank details correctly.
What is the ‘Type of Account’ in ITR?
When you file your ITR, you’re asked to enter your bank account details so that the Income Tax Department can deposit any applicable tax refund. Along with the account number and IFSC code, you must select your account type, which refers to whether your account is a Savings or Current account.
This field plays a critical role in the validation process. Most individual taxpayers—especially salaried professionals and freelancers—use Savings accounts for everyday transactions. On the other hand, Current accounts are generally used by businesses for managing higher volumes of financial transactions.
Selecting the wrong type, such as “Current” instead of “Savings,” can cause the portal to fail bank validation. This results in a type of account error, where the system cannot confirm that your account is valid or eligible for refund processing.
Type of Account Error in ITR Filing Meaning
The type of account error occurs when the e-Filing portal cannot verify the account information you provided due to a mismatch between the account type selected and the details recorded by your bank. As a result, your bank account is not validated, and your refund cannot be credited.
This is commonly seen during the bank account validation step—an essential requirement for ITR filing for FY 2024–25 (AY 2025–26). Bank validation ensures that your account is active, accurate, and linked to your PAN.
A validation failure due to an incorrect account type will flag your account as “Failed,” and unless corrected, your refund will not be processed.
How to Fix Type of Account Error in ITR Filing
Why This Error Occurs
There are several reasons this error might appear on your e-Filing dashboard.
One of the most common is selecting the wrong account type. This often happens when taxpayers are unsure whether they hold a Savings or Current account, especially when managing multiple accounts.
You may also encounter this issue if you’ve entered the wrong account number, an incorrect IFSC code, or if your account has been closed or has gone dormant.
Another major factor is failing to link your PAN with your bank account. The Income Tax portal verifies your bank details against your PAN. If that link doesn’t exist, the system won’t validate your account—no matter how accurate the rest of the details are.
What If You Ignore It?
Ignoring a type of account error can result in your ITR refund being indefinitely delayed. While your return might still be processed, any refund due will remain uncredited until the bank account is successfully validated.
This also prevents your ITR status from being marked as fully completed and increases the chances of further correspondence from the tax department for clarification.
How to Validate Bank Account in ITR
Step-by-Step Process to Re-Validate or Correct Account Type
If you’ve received a validation failure notification, don’t panic. The e-Filing portal allows you to revalidate your account in just a few steps:
First, go to the official Income Tax e-Filing portal visit income tax login and log in using your PAN and password.
From your dashboard, click on ‘My Profile’, and then choose ‘My Bank Account’ from the side menu.
Head to the ‘Failed Bank Accounts’ section. Here you’ll see which accounts have failed validation.
Next, select the ‘Re-Validate’ option. This will redirect you to the ‘Add Bank Account’ page, where you can edit your existing bank details.
Make sure you review and correct all fields. Enter the correct account holder name, account number, IFSC code, and select the right account type.
Once done, click on ‘Validate’. If all details are accurate, and your PAN is linked with the bank, your account will move from the “Failed” list to the “Validated” list.
What If You’re Adding a New Account?
If your current account is inactive, closed, or giving repeated validation issues, it’s best to add a new one.
From the same ‘My Bank Account’ section, choose ‘Add Bank Account’ and input the new account details. Be sure to select the correct account type and check that the PAN is already linked.
After successful validation, you can mark this new account as your primary refund account.
Common Reasons Behind Bank Account Validation Error
Understanding the root causes behind these validation issues helps you avoid them next time. The most frequent triggers include:
Bank Account Not Linked to PAN: Validation fails if your bank account isn’t linked to your PAN. Most banks allow PAN linking through internet banking or a simple form submission at the branch.
Incorrect Bank Account Details: Entering the wrong account number or IFSC code—often due to manual typos—can result in validation failure. Always double-check against your bank passbook or statement.
Dormant or Closed Account: If the account hasn’t been used in a long time or has been officially closed, validation will automatically fail. Use an active account to prevent this.
Incorrect Account Type Selection: Choosing “Current” instead of “Savings,” or vice versa, causes a mismatch during backend validation. Confirm the correct type with your bank before submission.
Tips to Avoid Type of Account Errors in Future Filings
To prevent this error in your next filing cycle, consider the following:
Always confirm your account type—don’t assume. Your bank’s mobile app, passbook, or branch can clarify this.
Ensure your PAN is correctly linked with your bank account before starting the ITR filing process.
Avoid using joint accounts unless your PAN is listed as the primary holder. The portal only validates accounts linked directly to your PAN.
Don’t use closed or inactive accounts. Even if you know the details by heart, a dormant account cannot receive refunds.
Before submitting your return, re-check account number and IFSC. A single wrong digit can cause weeks of refund delay.
FAQs on Type of Account and Bank Validation in ITR
What account type should I select in ITR if I’m salaried?
Most salaried individuals should select “Savings account” unless their salary is credited into a Current account.
Can I use a joint account for ITR refund?
You can, but it’s risky. Make sure your PAN is the primary one linked to the account. Otherwise, validation may fail.
My refund failed due to bank validation error. What do I do now?
Log in to the e-Filing portal, go to ‘My Bank Account’, and revalidate the failed account or add a new one with the correct account type and details.
Is bank validation mandatory for ITR refund?
Yes, absolutely. Without a validated bank account, your ITR may be processed, but your refund will not be issued.
How long does it take to validate a bank account?
Usually within 24–48 hours after submission, provided the account is active, PAN is linked, and all details match.
Final Thoughts
The type of account error in ITR filing may seem minor, but it has serious implications if not corrected. It not only delays your tax refund but can also compromise the smoothness of your entire tax filing experience.
Fortunately, the solution is straightforward. Re-validating your bank account using the e-Filing portal takes just a few steps—but it requires your attention to detail.
Select the correct account type. Link your PAN with your bank. Ensure the account is active and that every digit of your account number and IFSC code is correct. These small checks go a long way in making sure your income tax refund arrives on time.
Visit Our Post Page: Blog Page