Now Link PAN with Bank Account Instantly for Faster Tax Refunds

The Indian government has introduced a new facility to link PAN (Permanent Account Number) with bank accounts, aimed at speeding up the income tax refund process for taxpayers

Typically, processing tax refunds could take between 15 to 20 days, but this new initiative is expected to significantly reduce this time

The National Payments Corporation of India (NPCI) has launched a real-time verification system to facilitate the linking of PAN and bank accounts on the income tax e-filing website

This system allows for real-time verification of PAN details, bank account status, and the account holder's identity directly from banks' Core Banking Systems (CBS)

A new API (Application Programming Interface) has been introduced for government departments to enhance the accuracy and speed of these verifications

The initiative aims to make the income tax refund process faster and more efficient, reducing delays and minimizing the risk of fraud

Banks will need to upgrade their systems to comply with NPCI's secure API standards, which could involve significant operational changes

This system upgrade will not only expedite refunds but will also address concerns related to system upgrades and cybersecurity risks, ensuring a more secure and reliable process for taxpayers