Income Tax Portal Gets Smarter! Real-Time PAN & Bank Check by NPCI is Here:

Income Tax Portal Gets Smarter! Real-Time PAN & Bank Check by NPCI is Here In an effort to boost the country's digital payment system, the National Payment Corporation of India (NPCI) has recently come up with a new facility for PAN and bank account validation on the e-filing portal of the Income Tax Department. The new feature is designed to instantly verify the PAN of individuals and their bank details on the new ITR filing site. This new facility will make sure that the information given by the taxpayer is correct so that they get their tax refunds faster. The NPCI has urged all the member banks to start taking required actions to implement this service on a priority basis.

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.