To make Income Tax Return (ITR) filing smoother, the National Payments Corporation of India (NPCI) has introduced a new feature on the income tax e-filing website.
This feature will speed up the PAN and bank account verification process and make it available in real time for both taxpayers and government departments.
Real-time verification with new API
NPCI has launched a new Application Programming Interface (API), which allows real-time verification of a person’s PAN details, bank account status, and the account holder’s name.
This verification will be done directly through the Core Banking System (CBS) of the respective banks.
According to the official circular, “This API will help government departments confirm details like PAN, bank account activity status, and account holder’s identity directly from the bank’s internal system (CBS).”
What is an API?
An API is a software tool that allows two different digital systems to exchange information securely.
In this case, the API allows the Income Tax portal to directly connect with banks’ internal systems and verify user details in a safe and efficient manner.
NPCI has asked all member banks to implement this feature on priority, as it is being made available to help the Government of India.
What does this mean for taxpayers?
This new system is expected to benefit taxpayers in several ways:
Faster linking of PAN and bank account
Reduced chances of manual errors in verification
Quicker and safer processing of tax refunds and payments
More reliable and secure data verification
With this system in place, taxpayers can expect a smoother experience while filing returns and receiving refunds in the 2025 ITR cycle.
