The National Payments Corporation of India (NPCI) has launched a new feature that allows individuals to instantly verify their PAN and bank account details on the new ITR filing site. This new service aims to make the process of getting income tax refunds faster and to ensure that the information provided by taxpayers is more accurate.
New API for Real-Time Verification
As per the issued NPCI official circular, a newly made Application Programming Interface (API) will permit instant verification of a taxpayer’s PAN details, bank account status, and account holder identity via pulling real-time data from the Core Banking Systems (CBS) of banks.
NPCI cited that, “This API will be used by Government departments to verify customer account details like PAN validation, account status validation, and account holder name validation from their bank CBS.”
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The communication between the income tax department’s systems and banks has been facilitated under the software integration that ensures secure and automatic validation of the crucial information of the taxpayer.
Taxpayers Advantages
Below are the advantages that are provided by the deployed API:
- Faster PAN-Bank Linking: Quicker linking of Permanent Account Number (PAN) and bank accounts on the income tax portal.
- Facilitates the Manual Errors: Reduces verification failures that emerged due to mismatched or outdated data.
- Faster Tax Refunds: Allows quicker disbursal of refunds and other tax-related credits.
- Enhanced Data Security: Ensures validations are performed safely, directly via bank systems.
Banks Instructed to Fast-Track Implementation
This real-time validation facility, on priority, has been directed by the NPCI to all its member banks as the service is an essential enabler for the government of India’s tax administration infrastructure.
In the current digital transformation of the tax environment of India, the same initiative specifies another step, furnishing more precise, secure, and user-friendly services to millions of taxpayers.
