Tax Filing Just Got Easier: NPCI Launches Real-Time PAN-Bank Account Linking for Faster Verification

In a major step toward simplifying the tax filing process in INDIA, the National Payments Corporation of India (NPCI) has introduced a powerful new real-time PAN-bank account verification feature on the Income Tax e-Filing portal. The goal is to make PAN and bank account verification faster, more accurate, and more accessible for taxpayers and government departments.

NPCI has officially announced this update via circular, confirming the rollout of a new Application Programming Interface (API) that enables instant verification of PAN details, bank account status, and account holder identity — directly from the Core Banking System (CBS) of participating banks.

What is an API?

An API (Application Programming Interface) is a software connector that allows two systems to communicate securely. In this case, the API connects government platforms — like the Income Tax Portal — with banks’ internal systems, enabling seamless and accurate data sharing.

This API ensures that verification data flows securely from banks to tax authorities, eliminating manual steps and reducing delays. NPCI has urged all member banks to implement this new system on a priority basis to support the Indian government’s ongoing digitalization efforts.

What It Means for Taxpayers

For individual taxpayers, this real-time feature promises multiple benefits that will make filing tax returns smoother than ever:

✅ Faster PAN-Bank Linking

Previously, linking PAN and bank accounts could take several days. Now, it will happen almost instantly — greatly speeding up verification.

✅ Fewer Errors

Because data is pulled directly from banks’ systems, the chance of manual entry errors or mismatches will drop dramatically — reducing rejection rates and follow-up hassles.

✅ Faster & Safer Refunds

Income tax refunds will now be processed faster, since bank verification happens in real time. This also minimizes the risk of fraud or wrong deposits.

✅ Improved Data Reliability

Since verification happens through the bank’s Core Banking System, data authenticity is assured, making the process more secure and trustworthy for all parties.

The Bigger Picture

This feature represents an important milestone in India’s ongoing push for digital governance and ease of doing business. By streamlining PAN-bank account verification, NPCI is helping both taxpayers and government departments save time, reduce errors, and improve efficiency.

Final Takeaway

If you’re filing taxes this year, this new real-time verification API means that your PAN-bank linking and refund process will now be simpler, faster, and more reliable. Keep an eye on updates from your bank or the Income Tax e-Filing portal — and enjoy a smoother tax filing experience in 2025!

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Kuldeep Singh Chundawat

My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.

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