NPCI launches new facility of PAN-Bank Account Linking on Income Tax Portal, know how taxpayers will benefit?

NPCI: All banks have been asked by NPCI to use API for real-time PAN and account verification for the Income Tax e-filing portal for more accurate and faster verification.

NPCI: The National Payment Corporation of India (NPCI) has launched a new facility to facilitate PAN and bank account verification on the Income Tax e-filing website. Its purpose is to make the process of filing income tax returns faster and simpler for taxpayers and government departments.

NPCI issued a circular and told about this Application Programming Interface (API), which has been designed for real time verification of PAN details, bank account status and account holders. With the help of this interface, data verification will be done directly from the Core Banking System (CBS) of banks.

Bank verification will be accelerated

The circular said, this interface has been specially designed for government departments, with the help of which they will be able to verify the PAN, account status and name of the account holder of their customers from the Core Banking System (CBS) of their banks.

API will work as a software bridge

API is a software bridge that allows two systems to communicate and share data. With the help of this interface, government platforms like Income Tax Portal will get the facility of secure and quick verification from the core system of banks. NPCI urged all member banks to implement this facility on priority basis, as this service is being provided to the Government of India.

Taxpayers will benefit from this

This will speed up the process of linking PAN-bank account while filing tax returns for taxpayers, reduce manual errors during verification, speed up returns and other tax related payments. Also, the taxpayer's data verification will be more secure and reliable. Usually, after the tax return is filed, the validation status is updated in the e-filing account within 10-12 working days.