The National Payments Corporation of India (NPCI) has launched a new facility to link PAN and bank accounts in real time on the Income Tax e-filing website. With this new feature, taxpayers can now verify their PAN number and bank account instantly. The main benefit of this is that income tax refunds and government benefits can reach the bank account quickly and directly.
According to the Economic Times, NPCI recently issued a circular about this. It stated that this new API system has been specially designed for government departments. With the help of this API, government departments can verify the account holder’s name, account status, and PAN number directly from the bank’s Core Banking System (CBS). Legal expert Utkarsh Bhatnagar says this system will help in verifying taxpayer details quickly and correctly on the Income Tax portal. This will reduce delays in refunds and also lower the risk of fraud.
Banks Need to Update Their Systems
All banks will now need to change their systems to use NPCI’s new service. This new system helps in linking PAN and bank account in real time. Some banks may face technical problems and cyber security risks. But this step will make the digital payment system better and help people get their tax refund faster and without mistakes.
Aadhaar Now Required for New PAN Card
If you don’t have a PAN card and want to apply for one, then Aadhaar is now a must. From July 1, Aadhaar card has become a required document for getting a new PAN card. The Central Board of Direct Taxes (CBDT) shared this update. The main goal is to make the tax filing system more transparent and digital.
PAN-Aadhaar Linking Deadline is December 31
If you already have both PAN and Aadhaar cards, you must link them. The last date to do this without any fine is December 31, 2025. If you don’t link your PAN with Aadhaar by this date, your PAN card will become inactive from next year.