Introduction to API

As per the official circular, A new API (Application Programming Interface) has been created for PAN and Bank Validation of the taxpayer. The government will use this API to check the details of the account of the individual, including their PAN validation, Account status validation, and account holder name validation. It works by getting real-time information directly from the Core Banking Systems (CBS) of banks.

Advantages of Real-Time Verification by API

• Quick Validation: The new system will allow quicker and real-time validation of PAN and bank account details of the taxpayer.
• Improved Accuracy: Since the new system instantly verifies details, it will reduce the manual error arising due to mismatch or old data.
• Quick Tax Refund: It speeds up the process of the income tax refund
• Improved Security: It enhances the security and reliability of the validations as the validations are performed directly through the bank systems.
• Time and Cost Savings: The new service not only reduces the burden on the taxpayers but also on the income tax department. Manual verification processes consume more time and resources. The new system will eliminate this.