PAN Rules Change: It’s crucial to understand some important aspects of the PAN card rules. The Income Tax Department frequently makes changes to them. The draft Income Tax Rules 2026 proposes changes to the PAN rules. These changes will directly impact transactions, vehicle purchases, property deals, and hotel-event expenses.
The government’s goal is to reduce the hassle of PAN cards for small and everyday transactions, while also strengthening monitoring of larger transactions. You can learn about the proposed rules. Understanding the rules will help eliminate confusion and prevent any problems.
Learn about the rules related to cash deposits and withdrawals.
Under the proposed rules, a PAN card will be required only if a total cash deposit or withdrawal from one or more bank accounts exceeds ₹10 lakh (approximately ₹10 lakh) in the entire financial year. Currently, this rule requires a PAN card for cash deposits or withdrawals exceeding ₹50,000 in a single day. However, this limit is set to be increased several times. It could be raised to ₹10 lakh, but this limit will remain in place for the entire financial year.
PAN Card for Vehicle Purchases
According to the draft income tax rules, a PAN card will now be required for the purchase of both two-wheeled and four-wheeled vehicles only if the vehicle’s price exceeds ₹5 lakh. Currently, a PAN card is required for the purchase of any motor vehicle except two-wheeled vehicles, regardless of the price.
PAN Card Limits Will Also Be Increased in Hotels
There is a proposal to increase the spending limit for PAN cards in hotels and restaurants. The limit for PAN cards for payments related to convention centres, banquet halls, or event management services is also proposed. Additionally, a PAN card will now be required only if the payment exceeds ₹1 lakh. According to the current rules, the limit is up to ₹50,000.
Changes in Property Transactions
If you purchase land, a house, or a shop, you will only need to provide your PAN card if the transaction is ₹20 lakh or more. Currently, this limit is ₹10 lakh, which is proposed to be doubled. Now, everyone awaits approval of this proposal. Once approved by the government, it will be implemented.
People will benefit
According to the draft Income Tax Rules 2026, people used to need to provide their PAN card repeatedly for small transactions, but this hassle will be eliminated. This will further strengthen the tax department’s oversight of large financial transactions. This will provide convenience to the public and make the system more practical.
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vipin kumar
Vipin Kumar is An experienced journalist with 8 years in the media industry, having worked with prominent news platforms including Dainik Jagran and News24. Currently serving at Timesbull.com for almost four years, dedicated to delivering truthful, transparent, and people-centric news that informs and empowers readers. Committed to transparent, ethical, and...
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