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New PAN Rule: Luxury Weddings & 5-Star Hotel Bills Above ₹1 Lakh to Be Tracked

Vikram Singh
By Vikram Singh
3 min read
Published: 27 Feb 2026
New PAN Rule: Luxury Weddings & 5-Star Hotel Bills Above ₹1 Lakh to Be Tracked
New PAN Card Rules: The Indian government has tightened monitoring of large transactions to curb black money and tax evasion. According to the draft of the new rules, providing a PAN card will now be mandatory for many high-value transactions. The government’s objective is clear: to bring transparency to the economy and completely eliminate cash transactions.
If a significant discrepancy is found between your income and expenses, a notice from the Income Tax Department could arrive at your door. Let’s understand in detail how these rules, changing in 2026, will affect your pocketbook and lifestyle.

Why is the government increasing financial surveillance

People often resort to cash to conceal their true income, but now, in the era of Digital India, the government is preparing to track every major expenditure. There are several important reasons behind this strict measure, the most important of which is to curb tax evasion so that it becomes impossible to conceal large cash transactions.
PAN Card Update
PAN Card Update
Additionally, cleaning up the real estate sector is a major objective, eliminating the “black money” used in the purchase and sale of land and houses. The government will now match luxury expenses, such as expensive cars and lavish weddings, with your declared income to identify money laundering activities and completely prevent illegal money laundering.

Cash Transactions Over ₹10 Lakh

According to the new draft rules, providing a PAN card will be mandatory if you deposit or withdraw cash worth ₹10 lakh or more in a financial year. This rule will create difficulties for those who used to try to avoid the limit by making transactions in small installments. Now, the bank’s reporting system has become so advanced that even frequent small transactions will not escape the department’s attention.

Closer scrutiny of real estate and luxury cars

The biggest change has been seen in the property market, where a proposal is now making a PAN card mandatory for property transactions up to ₹20 lakh. This means that not only metro cities but even ordinary plot registrations in smaller towns and cities will be under the government’s radar. Furthermore, if you purchase a mid-segment car costing more than ₹5 lakh, your transaction will be directly tracked. Now, not only expensive sports cars but even mid-range vehicles purchased by ordinary families are under surveillance.

Lifestyle Expenses and Weddings Under Monitoring

Income Tax Rule 2026

If you’re staying in a five-star hotel or hosting a large corporate event or lavish wedding, you’ll need to present your PAN card for bills exceeding ₹1 lakh. The government is now collecting data on your lifestyle expenses. Additionally, to prevent money laundering, a PAN card has now been made mandatory for opening an insurance account with any company, making it easier to identify high-value policyholders and trace the source of their funds.

Cross-checking ITR and bank data

The data sharing process between banks, the Income Tax Department, and the Registry Office has become much faster and digital. If you show an annual income of ₹5 lakh in your Income Tax Return (ITR), but your bank account has transactions of ₹15 lakh in a year, or you suddenly purchase a property worth ₹20 lakh, the system will immediately generate an automated alert. This significant discrepancy between income and expenditure will put you directly on the Income Tax Department’s radar, and you may be asked for an explanation.
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