NPCI launches new facility of PAN-Bank account linking on Income Tax portal, know how taxpayers will benefit?:

News Topical, Digital Desk : NPCI: National Payment Corporation of India (NPCI) has launched a new facility to simplify the verification of PAN and bank account on the income tax e-filing website. Its aim is to make the process of filing income tax returns faster and simpler for taxpayers and government departments.

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

Bank verification will speed up

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. This interface will allow government platforms like the income tax portal to connect to banks' core systems in a secure and quick verification manner. NPCI urged all member banks to implement this facility on priority basis as this service is being provided to the Government of India.

Taxpayers 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, taxpayer data verification will be more secure and reliable. Usually, after filing tax returns, the validation status is updated in the e-filing account within 10-12 working days.