Draft Income Tax Rules 2026: Now work will not work without PAN? These 5 big changes are going to happen in 2026

Draft Income Tax Rules 2026 | PAN vehicle purchase rule: The government has issued draft Income-Tax Rules, 2026, which suggest major changes in the rules related to financial transactions where PAN disclosure will be mandatory. Under the suggested changes, the limit for certain transactions where PAN card disclosure is required has been increased. Two of the suggested increased limits are – from Rs 10 lakh to Rs 20 when buying or selling immovable property, from Rs 50,000 per day in a financial year to Rs 10 lakh or more when depositing cash in a bank, cooperative bank or post office.

cash deposit and withdrawal

Under the proposed Income Tax Rules, 2026, it will be mandatory to declare PAN if a total of ₹ 10 lakh or more cash is deposited or withdrawn from one or more bank accounts in a financial year. Currently, PAN is required for cash deposits of more than ₹50,000 in a day.

purchase of motor vehicle

For the purchase of a motor vehicle, including two-wheelers, PAN will be required only if the purchase price is more than ₹ 5 lakh. Currently, PAN is required for the purchase of all motor vehicles, irrespective of their price, while two-wheelers are excluded.

Hotel, Event and Restaurant Payments

For hotel and restaurant bills, as well as payments to convention centres, banquet halls, or event management service providers, PAN will be required only if the payment exceeds ₹1 lakh, as against the current limit of ₹50,000.

property transaction

For transactions involving immovable property, including purchase, sale, gift or joint development agreement, PAN will be required if the value of the transaction is more than ₹20 lakh, which is currently ₹10 lakh.

insurance account

The draft rules also make PAN mandatory for starting an account-based relationship with the insurance company. Currently, PAN is required only if the life insurance premium exceeds ₹50,000 in a financial year.

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