Introduction of New Verification System
The National Payments Corporation of India (NPCI) has introduced a new feature on the income tax portal that allows for real-time verification of PAN and bank accounts. This initiative aims to expedite the process of income tax refunds for taxpayers, ensuring they receive their refunds quickly and accurately. Additionally, it will streamline the transfer of government benefits.
Details of the New System
According to NPCI, this system is specifically designed for government departments. It will verify PAN details, bank account status, and account holder names by connecting directly to the banks' core systems. As this service is provided to the government, all member banks have been instructed to prioritize its implementation.
Impact on Customers
This new feature will facilitate quicker and error-free processing of income tax refunds and government benefit transfers. By verifying details instantly, it will reduce delays and minimize the risk of fraud. Taxpayers can expect to receive their refunds sooner, as the verification of bank account and PAN information will now occur in real-time.
Instructions for Banks
To implement this feature, banks must upgrade their systems to comply with NPCI's secure software standards, which may require significant changes. This initiative represents a strong step towards the Digital India campaign, aiming to enhance efficiency in tax refund processes.
Benefits of the New System
1. Immediate verification of PAN and bank accounts in real-time.
2. Faster and more accurate income tax refund processes.
3. Government scheme benefits will reach the correct accounts.
4. The likelihood of fraud and scams will be significantly reduced.
How to Link PAN and Aadhaar
Visit the income tax department's portal.
Click on the link for Aadhaar options. Enter your PAN and Aadhaar numbers.
Next, provide your registered mobile number.
Finally, click on the self-declaration box to link your Aadhaar and PAN.
Mandatory Linking for Existing PAN Holders
Additionally, existing PAN holders are required to link their PAN with Aadhaar by December 31, 2025. Failure to do so will render their PAN invalid starting January 1, 2026. Reports indicate that approximately 130 million individuals have yet to link their Aadhaar with their PAN.
