PAN Card Mandatory: PAN Card (PAN) has become a very important document today. Its use is not limited only to tax related work. Today it is used in everything from banking to buying a car, property etc. If you do not have PAN card, you will not be able to do many important things.

The government has issued a list of many financial transactions where PAN will be mandatory. Let us know, for which works a PAN will be required?

List of works issued by the government

1. It is necessary to provide PAN card even in matters related to investment. If you invest more than Rs 50,000 in mutual funds, bonds, debentures or RBI bonds, then you are required to provide your PAN number during this process.

2. It is mandatory to provide PAN card even in purchase and sale related to property and shares. If you buy or sell property worth more than Rs 10 lakh or deal in unlisted shares worth more than Rs 1 lakh, then it is mandatory to provide PAN number.

3. PAN card also becomes necessary in banking related transactions. If you deposit more than Rs 50,000 in cash in a day or make a demand draft or pay order of the same amount, then you need to provide PAN number during this process.

4. Under the rules, PAN card is required while opening bank and demat accounts. PAN card will have to be provided while opening a new bank account (except basic account) or demat account.

5. Insurance and Wallet: If you have a life insurance premium of more than Rs 50,000 in a year or spend this much in digital wallet, it is mandatory to provide PAN card.

6. Vehicle purchase and sale: PAN card is required for purchase or sale of any motor vehicle except two-wheeler.

7. Luxury and travel expenses: PAN card is required for cash payments of more than Rs 50,000 in hotels/restaurants.

There has been a change in PAN card rules

Under the new rules of PAN card, making PAN card is no longer easy. Earlier, PAN card could be made very easily by just showing documents like Aadhar card.

According to the new rules, now to get a PAN card, documents like birth certificate, 10th mark sheet, passport or voter ID card will be required. The government has taken this decision to make the PAN card more secure.

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The central government is going to make major changes in the direction of simplifying the income tax system. In fact, the Finance Ministry has released the draft of Income Tax Draft Rule 2026, in which it is proposed to relax the rules related to PAN card. This will have a direct impact on the everyday transactions of common people related to banking, shopping and services. If these rules are implemented then the compulsion to show PAN card again and again on small transactions will end.

There will be big relief in bank transactions

Actually, till now the rule was that if a person deposits more than Rs 50 thousand in cash in a single day, then it is necessary to give PAN. But there is a proposal to change this system in the new draft rules. Now, PAN card will be mandatory only if there is a total cash deposit or withdrawal of Rs 10 lakh or more in one or more bank accounts in the entire financial year. This means that those doing small cash transactions can get big relief.

PAN card rules will change even after buying a car

At present, it is mandatory to give PAN card for purchasing any motor vehicle of any value, whereas two-wheeler is out of this scope, but according to the new rules, PAN card will have to be given only if the price of both two-wheeler and four-wheeler is more than Rs. 5 lakh. PAN card will not be mandatory if you buy a car worth less than Rs 5 lakh.

Deal on hotel, restaurant and event expenses also

It has also been proposed to provide relief in expenses related to hospitality and event management sector. At present, it is mandatory to show PAN card on hotel or restaurant bills of more than Rs 50 thousand. In the draft rules, it has been said that this limit will be increased to one lakh. The same rule will also apply to banquet halls, convention centers and event management services. Apart from this, changes are also proposed in transactions related to real estate. At present, it is mandatory to provide PAN on property deals worth more than Rs 10 lakh. But in the new rules, there is a proposal to increase this limit to Rs 20 lakh, that is, PAN will not be mandatory for deals less than Rs 20 lakh.

When will the new rules come into effect?

According to the report, the government and CBDT will take opinion of stakeholders on these draft rules. After this, they can be finalized and notified by the first week of March 2026. The new rules are likely to come into effect from April 1, 2026, and will replace the old income tax rules of 1962.

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