New Income Tax Draft Rules 2026: It may be mandatory to provide PAN in these transactions from April 1

By Samira Vishwas On Feb 12, 2026

Income Tax Department Draft Income Tax Rules, 2026 have been issued, in which PAN Several important changes related to its use have been proposed. of these rules Likely to be implemented from 1 April 2026 However, before that suggestions have been sought from the public till 22nd February.

If these rules are implemented, it will affect the common people. everyday financial transactions But it will have to do with things like buying a vehicle, property deal, insurance premium, hotel bill and withdrawing cash from the bank.

Suggestions can be given till 22 February

The Income Tax Department has released the draft rules for public discussion. all stakeholders 22 February 2026 You can give your opinion till. After this the final rules will be notified.

PAN rules on vehicle purchase

At present:

PAN is mandatory on all vehicles except scooters and bikes
No minimum transaction limit

As per draft rules:

Any vehicle costing more than ₹5 lakh But PAN will be mandatory
In this Two-wheelers will also be included
tractor discount is given

Hotel and Restaurant Bill

Now:

Once, I Cash payment more than ₹50,000 But PAN is necessary

Proposed changes:

by increasing this limit ₹1 lakh will be done
That means PAN will have to be given only on bills above ₹ 1 lakh.

life insurance premium

Current rules:

annual Premium more than ₹50,000 But PAN is necessary

In the new draft:

All account-based relationships PAN mandatory for
Almost all life insurance policies will come under its purview.

property related transactions

At present:

More than ₹10 lakh PAN is necessary on property deals

Draft Rules:

by increasing this limit ₹20 lakh can be done
This will make compliance easier in low-cost property deals.

Cash withdrawal from bank or post office

Now:

in a financial year Cash withdrawal more than ₹20 lakh reporting is required

Proposed changes:

minus this limit ₹10 lakh will be done
The aim is to curb tax evasion and unaccounted cash

What does it mean for common people?

The purpose of the new rules is to:

in small transactions reducing compliance burden
On large and cash based deals close monitoring

Draft Income Tax Rules 2026 Financial transactions can be made more transparent in the future. If these rules are implemented, taxpayers will have to be more cautious than before.

Keep an eye on the final rules before April 1, so that any kind of trouble or penalty can be avoided.