PAN Card Update: If you are a PAN card holder, this news could be very important for you. The government will make changes to income tax rules effective April 1st, 2026. Following this, many changes related to PAN cards are certain to occur. These changes will affect everyone, from ordinary people and employed individuals to business owners. If you are depositing cash in a bank, buying a new car, or paying a hotel bill, a PAN card will be required. Therefore, it becomes crucial to understand the changes being made to PAN card rules.
The question now arises: why is the government going to change the PAN card rules? What is the government’s intention? The government is striving to make the tax system even more hi-tech. Therefore, the government’s focus is not only on small transactions, but also on transactions involving large amounts of money. The government wants to strengthen its oversight of large-value transactions using PAN cards. This will further strengthen tax evasion and financial data security.
Changes in Cash Deposit and Withdrawal Rules
According to the new rules, providing a PAN card will be mandatory if a person deposits or withdraws a total of ₹10 lakh or more in cash during a financial year. Previously, this rule was more stringent, as a PAN was required for cash transactions exceeding ₹50,000 in a single day. Now, the stress of repeatedly presenting a PAN for small daily needs will be eliminated, and the focus will be on the annual amount.
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PAN Card Required for Vehicle Purchases
Under the new rules, providing a PAN card will be mandatory if you are purchasing a car, SUV, or two-wheeler that costs more than ₹5 lakh. Previously, providing a PAN card was mandatory regardless of the vehicle price. This change will provide some relief to middle-class buyers.
New Rules for Hotel and Restaurant Payments
If you make a payment of more than ₹1 lakh to a hotel, restaurant, banquet hall, convention center, or event management company, you will be required to provide a PAN card. Previously, this limit was ₹50,000. This means that now a PAN will only be required for large expenses.
Change in PAN Limit in Property Deals
If the value of a property exceeds ₹20 lakh in a purchase, sale, gift, or joint development agreement, it will be mandatory to show a PAN card. Previously, this limit was ₹10 lakh. This change will further strengthen the government’s control over large real estate transactions.
Change in PAN Rules for Insurance
After the new rules come into effect, providing a PAN card will be mandatory if you enter into an account-based relationship with an insurance company. Previously, a PAN was only required if the annual life insurance premium exceeded ₹50,000. Now, a PAN is being made mandatory from the outset.
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What does this mean for the general public?
Small transactions will be less cumbersome to require a PAN, but large expenses and high-value transactions will be fully tracked. This will make the tax system clearer and more transparent. Cash will now need to be used judiciously, and a PAN will be required before making major purchases.
Who will benefit?
The new rules will provide relief to employed individuals, the middle class, and digital payment providers. However, those who use cash frequently or conduct large real estate transactions without a PAN will face increased difficulties.
What to keep in mind going forward?
First, ensure that your PAN card is active and linked to Aadhaar. Know its limit before any major expenditure and try to use digital payments instead of cash. Keep your financial records clean to avoid future problems.
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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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