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PAN No Longer Required for Bank Transactions Up to This Amount, Learn About the New Rules

Adarsh P

February 13, 2026 at 1:12 PM IST · 2 min read

PAN Card Update: If you use a PAN card, this news may be very important for you. PAN card rules are set to change from April 1, 2026. The Modi government is working to simplify income tax rules. Consequently, a draft Income Tax Rule has been introduced, which also changes several rules related to PAN cards.

The central government is working to eliminate outdated and complex income tax rules and introduce a simpler system for the general public. The Finance Ministry has released the proposed framework of the Income Tax Draft Rules 2026. This change aims to relieve people from the need to repeatedly show their PAN card for everyday transactions and purchases.

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PAN requirements will be relaxed for banking transactions

Under current rules, if a person deposits more than ₹50,000 in cash in a day, they are required to provide a PAN card. The new draft rules propose to change this. Instead of a daily limit, an annual limit will be established. If the total cash transactions from a bank account do not exceed ₹10 lakh in a year, a PAN card will not be required. This could provide significant relief to small and medium-sized account holders.

Car and property purchases will become easier

The government has also suggested simplifying the rules related to vehicle and property purchases. According to the proposal, it will no longer be mandatory to show a PAN card for purchasing a vehicle up to ₹5 lakh. Previously, a PAN card was required for every vehicle purchase. Similarly, the limit for buying and selling real estate without a PAN card is proposed to be increased to ₹20 lakh, up from the current limit of ₹10 lakh.

Relief in hotel and wedding expenses

To promote the hospitality and event sector, the government has also suggested changes in the expenditure limits. Once the new rules are implemented, a PAN card will not be required for bills up to ₹1 lakh at hotels, restaurants, or wedding-related events. Currently, this limit is 50,000 rupees. This will provide convenience to people during social and family events.

When will the new rules be implemented?

The Income Tax Draft Rules 2026 will replace the old Income Tax Rules of 1962. The government will begin the process of soliciting suggestions from the public and experts. It is expected that these will be finalized by March 2026, and the new rules will be implemented nationwide from April 1, 2026.