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Income Tax Rules 2026: PAN Mandatory Only Above ₹10 Lakh in Bank Transactions

PAN 2.0 Card Update

Vikram Singh

February 22, 2026 at 2:02 PM IST · 3 min read

New Income Tax Act 2026 PAN Card Limits: If you’re planning to buy a new car, book a hotel for a wedding, or deposit a large sum of money in the bank, this news is especially for you. The central government is fully prepared to implement the new Income Tax Act from April 1, 2026. This new law proposes revolutionary changes to the rules related to the mandatory PAN card requirement.

According to reports, the CBDT may issue a notification regarding these new rules by the first week of March. The main objective of these changes is to relieve taxpayers of the burden of paperwork and update the rules to reflect current inflation. Let’s explore in detail how this will impact your pocket and everyday financial transactions.

Cash Deposits and Withdrawals at Banks

Cash Deposit Rules

The biggest piece of good news for businessmen and ordinary citizens has come regarding bank transactions. Under the new law, a PAN card will now be mandatory for cash deposits or withdrawals exceeding ₹10 lakh in a financial year.

Previously, the requirement for a PAN card was required for deposits exceeding ₹50,000 in a single day, which caused significant inconvenience to small businesses and women with household savings. This government move will promote ease of living in the banking sector and free the middle class from the hassle of repeatedly presenting their PAN card.

Car and Bike Purchases

If you are planning to purchase a budget car or a premium bike, you will no longer need to submit a copy of your PAN card at every showroom. Under the new provisions, a PAN card will no longer be mandatory for the purchase of any vehicle (car or bike) costing less than ₹5 lakh. Currently, a PAN card is required for every motor vehicle purchase. The government believes this will boost demand in the automobile sector and make vehicle purchases easier for the middle class.

Hotel Bills and Event Management

During the wedding season, the PAN card requirement limit has been increased for large hotel bookings and event management bills. According to the new rules, a PAN card will be required only when the hotel, restaurant, or event management bill exceeds ₹1 lakh. Previously, this limit was only ₹50,000, which seems very low in today’s inflationary times. Now, you can enjoy family gatherings without any fear and be free from the stress of requiring a PAN card for small bills.

Property Deals

PAN Card Update

The government has also shown generosity towards those buying or selling land or issuing gift deeds. The PAN card requirement limit for real estate transactions has been increased from ₹10 lakh to ₹20 lakh. This will provide relief to low- and middle-income individuals purchasing small plots or houses from the legal complications of registration.

A Gift for the Salaried Class

The new law also makes special provisions for the salaried class. A car allowance of ₹8,000 to ₹10,000 per month is proposed for employees using government or company cars, including driver expenses.

Furthermore, positive changes have been made to the free meal rules to reduce the burden on employees’ take-home salaries. Meanwhile, the government has tightened reporting requirements for crypto and digital currencies and recognized CBDC as an official electronic payment mode.

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