Property Transaction PAN rule 2026: Important changes in the rules related to property transactions have come into effect from April 1, 2026. Now the government has increased the mandatory limit of PAN card, which will provide great relief to small buyers and sellers. This move is especially beneficial for those who invest in low-cost properties.
Limit increased from Rs 10 lakh to Rs 20 lakh
According to the earlier rule, it was mandatory to provide PAN card for any property transaction of more than Rs 10 lakh. But under the new rules this limit has been increased to Rs 20 lakh. This means that now it will not be mandatory to give PAN for buying or selling property up to Rs 20 lakh. This will make the paperwork process easier in small deals.
Relief to small towns and rural areas
People of small towns and rural areas will benefit the most from this change. Many times there used to be problems in the registry due to lack of PAN card, which will now end to a great extent. This will make the process of purchasing small plots or houses simpler and faster, which will also boost real estate activities.
When will PAN card be necessary?
However, this exemption is applicable only for properties up to Rs 20 lakh. If the price of the property is Rs 20 lakh or more, then it will be mandatory to give PAN. Apart from this, if a person claims tax exemption on capital gains by selling property, PAN will still be required. PAN may also be required for large banking transactions under KYC rules.
Promote ease of doing business
This step of the government is being considered an important initiative towards promoting ‘Ease of Doing Business’. Now less documents will be required in low cost property transactions, which will make the process fast, transparent and convenient. This change has especially brought relief to first-time home buyers.
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