By Admin 
PAN Rule Changes: There are going to be changes in the rules related to Income Tax from the new business year starting from 1st April. Amidst the ongoing preparations regarding this, the Income Tax Department has issued draft Income-Tax Rules, 2026 as well as draft tax return forms and has also sought suggestions from the general public on this. This objective is to make the tax system simple, understandable and transparent to everyone. Some changes related to PAN card are also proposed in the Draft Income-Tax Rules, 2026, whose effect you will see in everyday life.
The government has given the list in the Draft Income Tax Rules, 2026, where it will be necessary to declare PAN. Under the draft Income Tax Rules, 2026, several monetary limits have been increased, which may make compliance easier for small transactions, while the rules will become stricter for larger transactions. Let us know which rules are going to change regarding PAN card:-
Higher limit for cash deposit and withdrawal
One of the biggest changes is related to cash dealings with banks. Under the draft rules, it will be necessary to disclose PAN only when there is deposit or withdrawal of Rs 10 lakh in one or more bank accounts in a financial year.
This is quite different from the existing rule, in which it is necessary to quote PAN if cash is deposited more than Rs 50,000 in a day in a bank or cooperative bank. In the proposed rule, the government is focusing on big transactions, so that high value transactions can be monitored.
When will PAN be given while buying a car?
According to the draft rules, PAN will have to be mentioned while purchasing a vehicle only if the price of any four wheeler including motorcycle is more than Rs 5 lakh. Currently, PAN is mandatory for purchasing a motor vehicle, irrespective of the price. There are no special rules for buyers of vehicles and two-wheelers priced lower than this. The purpose of the new limit is to link compliance with the purchase value, which will eliminate the problem of providing unnecessary PAN details for buyers of low-cost vehicles.
Relief for small hotel and event payments
If the draft rules are approved, there will be changes in the hospitality and events sector as well. PAN will be required only when the payment being made to a hotel, restaurant, banquet hall, convention center or event manager is more than Rs 1 lakh. Under the current rule, it is mandatory to quote PAN for hotel or restaurant bills of more than Rs 50,000. Doubling the limit will make it easier for customers to pay small bills without any extra documents.
New PAN limit for real estate related deals
If the value of your purchased, sold, gifted property or any joint development agreement related to it is more than Rs 20 lakh, then it is necessary to show PAN card. Currently this limit is Rs 10 lakh.
Insurance related changes
The new rules also include important changes regarding the insurance sector. PAN will become mandatory to start an account-based relationship with the insurance company. Under current rules, PAN is required only if the life insurance premium in a financial year exceeds Rs 50,000.
Also read:
New Income Tax Act is going to be implemented from April 1, know what will be the changes for taxpayers?