New Tax Rules: The central government is working to make the income tax system simpler, more transparent, and timely. Following Budget 2026, the draft Income Tax Rules 2026 have now been released. These proposed rules suggest several changes that could provide relief to ordinary taxpayers in everyday transactions. In particular, the proposal to relax the provisions related to the mandatory PAN card requirement has become a topic of discussion.
According to the government’s new income tax rules, the use of PAN cards has become extremely important. The government’s primary objective in implementing the new PAN card rules is to prevent tax evasion and strengthen digitalisation. Let’s explore these in detail.
Relief on Hotel and Restaurant Payments
According to the draft rules, it is proposed to increase the threshold for displaying PAN for payments related to hotels, restaurants, banquet halls, and event management. If a customer’s bill is less than ₹1 lakh, providing a PAN will not be mandatory. Currently, PAN is required for payments exceeding ₹50,000. This change has been proposed keeping in mind rising inflation and increasing expenses, so that middle-class and general consumers are not faced with the hassle of repeatedly presenting documents.
Changes in Cash Deposit and Withdrawal Rules
The new draft also suggests significant amendments to cash transactions. According to the proposal, if the total cash deposits or withdrawals in one or more bank accounts in a financial year are less than ₹10 lakh, providing a PAN will not be required. Currently, a PAN is mandatory for cash deposits exceeding ₹50,000 in a single day. The new proposal is expected to provide some relief to salaried individuals and small businesses.
New Provisions for Property, Vehicle, and Insurance Transactions
The draft rules also suggest amendments to PAN provisions related to property purchases and sales. Now, it is proposed to remove the PAN requirement for property transactions up to ₹20 lakh, compared to the current limit of ₹10 lakh.
For vehicle purchases exceeding ₹5 lakh, PAN will be required, including two-wheelers. Providing a PAN will also be mandatory when establishing account-based relationships with insurance companies, ensuring transparent financial transaction records.
What could be the impact?
If these proposals are finalised, ordinary citizens could be relieved of documentation formalities in many common transactions. However, the government’s priority is to simplify the tax system while maintaining financial transparency. The extent of these changes will be clear only after the final rule notification.
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Adarsh P
Adarsh Pal is a content writer at Timesbull Media. He specializes in writing news related to industry updates, the automotive sector, banking, telecommunications, the travel sector, and personal finance. Adarsh has previously worked with several digital media channels. He is skilled at presenting news accurately and disseminating information based on...
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