From April 1, 2026, several rules related to PAN are going to change due to the draft Income Tax Rules 2026, which will affect everyone from the common man to the high-income earners. Be it depositing cash, buying a car or paying a big bill at a hotel… everyone will feel the impact of the change in PAN card rules. Let’s find out what the PAN card rules are and how they have changed.

Why is the government changing the PAN rules now?

Because the procedure has changed-

– The government wants to focus on large transactions.

– Making the tax system smarter and data-driven Reducing the hassle of providing unnecessary PAN details for the common man

– Better monitoring of high-value transactions

What is changing at a glance?

PAN limit increased for cash deposits/withdrawals
– New PAN rules for car and two-wheeler purchases
– Changed limits for hotel and event transactions
– Doubled PAN limit for property transactions
– New rules for insurance accounts
– All new rules as per the new Income Tax Act, 2025
– All these rules are applicable from April 1
– Notification may come in the first week of March

Now how will the rules for cash deposits or withdrawals change?

Answer- If cash deposits or withdrawals of Rs 10 lakh or more are made in a financial year, PAN will be mandatory.

What was the earlier rule?

PAN was mandatory for more than Rs 50,000 in a day.

When should PAN be given while buying a car or bike?

The new rule states-

– If the value of the car, SUV, bike (all inclusive) is more than Rs 5 lakh, then PAN card will be required.

– As per the earlier rule, PAN card was always required for buying a car.

When will PAN be applicable for hotels, restaurants or events?

If someone’s hotel bill, restaurant, banquet hall, convention center or event management bill exceeds Rs 1 lakh, then it will be mandatory to provide a PAN card. Earlier, this limit was Rs 50,000.

What is the new calculation of PAN in the case of property purchase and sale?

Now, if the value of purchase, sale, gift and joint development agreement of property exceeds Rs 20 lakh, then showing PAN card will be mandatory. Earlier, this limit was Rs 10 lakh.

What are the new changes related to insurance?

After the new rules come into effect, PAN card will be mandatory if an account is opened with an insurance company. According to the previous rules, PAN card was mandatory if the annual life insurance premium exceeded Rs 50,000.

What does this mean for citizens?

The hassle of showing PAN card will be reduced in small transactions.
– Tax inquiry on big expenses will be done
– Financial planning is now more transparent
– Cash should be used wisely
– PAN should be shown to buy something of high value

Who benefits and who loses?

After the implementation of the new rules, it will be easier for salaried class, middle class buyers and users of digital transactions. But for high cash users or buyers and sellers in the real estate sector, it will be difficult to get a large amount of money without PAN.
It will be impossible to spend money on the account.

What will change?

Banks, dealers, hotels will all follow the new rules.
– Large transactions without PAN may be blocked
– The system can be pre-filled, auto-tracked

What to do now?
– Check whether the PAN card is active or not
– Check whether the PAN is linked to Aadhaar or not
– Check the limit of large expenses in advance
– It is advisable to adopt digital methods instead of cash
– Financial documents should be kept clean

Therefore, one thing is now clear- Be it expenditure or investment, PAN is no longer just a document, it is going to become the financial identity of the citizen.

About the Author

Avijit

A digital media professional with 4 years of experience, skilled in online content creation, media and information work, his goal is to regularly bring updates on government projects, scholarships and jobs to his readers.

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