A systematic and unified approach to transformations and symmetries of general second order linear parabolic partial differential equations is presented. Equivalence group is used to derive the Appell type transformations, specifically Mehlers kernel in any dimension. The complete symmetry group classification is re-performed. A new criterion which is necessary and sufficient for reduction to the standard heat equation by point transformations is established. A similar criterion is also valid for the equations to have a four- or six-dimensional symmetry group (nontrivial symmetry groups). In this situation, the basis elements are listed in terms of coefficients. A number of illustrative examples are given. In particular, some applications from the recent literature are re-examined in our new approach. Applications include a comparative discussion of heat kernels based on group-invariant solutions and the idea of connecting Lie symmetries and classical integral transforms introduced by Craddock and his coworkers. Multidimensional parabolic PDEs of heat and Schrodinger type are also considered.
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