ITR Refund For AY 2025-26: NPCI Introduces Real-Time PAN–Bank Linking On Income-Tax Portal

The National Payments Corporation of India (NPCI) has rolled out a real-time Permanent Account Number (PAN)–bank account linking functionality on the income tax department's e-filing portal. This is to enable taxpayers to directly verify their bank accounts through their PAN and receive quicker income tax refunds.

Previously, the process of validation took longer using batch updates or delayed bank confirmations. This usually resulted in refund failure or extended waiting periods for taxpayers who otherwise had filed their income tax returns (ITRs) timely.

Why it Matters to Taxpayers

According to income tax guidelines, refunds are payable only in bank accounts that are verified and associated with a taxpayer's PAN. In case this linking does not happen or is pending, refunds are either delayed or not credited at all.

The new facility solves this agony by allowing real-time PAN–bank verification through the banks' core banking system (CBS) through NPCI. 

It does away with having to wait for days for backend feeds or manual verification, which can be particularly useful during the tax filing season when lakhs of taxpayers are looking for refunds.

How to Use the Facility

Taxpayers may log in to the income tax e-filing portal and navigate to the "Pre-validate bank account" tab in their profile settings. On choosing their bank and providing the necessary details, including account number and IFSC code, the portal looks up the PAN–bank match in real time.

If the data conforms to the bank records and those of NPCI, the account is instantly flagged as authenticated. Such an account is eligible for refunds without any more delays.

Improved Accuracy, Less Error

In the previous system, taxpayers usually experienced refund problems because of errors in data entry, old records, or discrepancies between bank and PAN details. This real-time validation reduces such problems to a great extent by validating the details directly from the bank's systems.

The procedure will also help prevent frauds from creeping into the system. Only authentic bank accounts that are verified as belonging to the PAN holder will be accepted, thus avoiding misrouting of refunds to erroneous or unauthorised accounts.

A Step Towards Smoother Refunds

The upgrade will prove advantageous both to individual taxpayers and professionals dealing with multiple filings on behalf of clients. Refund credited to the correct account in a timely manner will drastically reduce grievance redressal.

For the tax department too, it translates into fewer refund rejections, lower manual intervention, and an even more efficient refund process.