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  5. From cash to property: 5 PAN rule changes in draft Income-tax Rules 2026

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From cash to property: 5 PAN rule changes in draft Income-tax Rules 2026

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By Sangeeta Ojha

3 min read | Updated on February 11, 2026, 17:38 IST

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SUMMARY

The draft Income-tax Rules 2026 propose higher PAN-quoting thresholds for cash deposits, motor vehicle and property transactions, hotel and event payments, and insurance accounts, easing compliance for high-value financial activities.

big PAN rule changes coming

For transactions involving immovable property, including purchase, sale, gift, or joint development agreements, PAN will be mandatory if the transaction value exceeds ₹20 lakh. | Image: Shutterstock

The draft Income-tax Rules 2026 propose a significant increase in transaction limits for mandatory quoting of Permanent Account Number (PAN) across a range of financial activities, including cash deposits and withdrawals, purchase of motor vehicles and property, and payments for hotel and event-related services.

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Key PAN-quoting threshold changes proposed under the draft Income-tax Rules, 2026 include:

Cash deposits and withdrawals

Under the proposed Income Tax Rules, 2026, quoting of PAN will be mandatory for cash deposits or withdrawals aggregating to ₹10 lakh or more in a financial year across one or more bank accounts. At present, PAN is required for cash deposits exceeding ₹50,000 in a single day.

Motor vehicle purchases

For motor vehicle purchases, including two-wheelers, PAN will be required only if the purchase price exceeds ₹5 lakh. Currently, PAN is mandatory for all motor vehicle purchases regardless of value, 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, compared with the existing threshold of ₹50,000.

Property transactions

For transactions involving immovable property, including purchase, sale, gift, or joint development agreements, PAN will be mandatory if the transaction value exceeds ₹20 lakh, up from the current limit of ₹10 lakh.

Insurance accounts

The draft rules also mandate PAN for initiating an account-based relationship with an insurance company. Currently, PAN is required only when life insurance premiums exceed ₹50,000 in a financial year.

Proposed PAN Quoting Requirements – Draft Income‑tax Rules, 2026

CategoryCurrent PAN RequirementProposed PAN Requirement (Draft Rules 2026)Change
Cash deposits & withdrawalsPAN required for cash deposits > ₹50,000 in a single dayPAN mandatory for cash deposits or withdrawals ≥ ₹10 lakh in a financial year across one or more bank accountsMajor threshold increase; includes withdrawals
Motor vehicle purchasesPAN mandatory for all motor vehicle purchases, excluding two‑wheelersPAN required only if purchase price > ₹5 lakh, including two‑wheelersThreshold-based requirement; two‑wheelers now included
Hotel, restaurant & event-related paymentsPAN required for payments above ₹50,000PAN required only for payments > ₹1 lakhThreshold doubled
Immovable property transactionsPAN required for transactions over ₹10 lakhPAN required for transactions exceeding ₹20 lakhThreshold doubled
Insurance (account-based relationship)PAN required only if life insurance premiums > ₹50,000 in a yearPAN required for initiating any account-based relationship with insurance companiesScope expanded significantly
( Source: Draft Income‑tax Rules, 2026 )
As per a report in PTI , Finance Ministry sources said the Central Board of Direct Taxes (CBDT) will finalise the rules after stakeholder consultations and notify them by the first week of March. The revised Income Tax Rules are being framed to operationalise the Income Tax Act, 2025, which comes into effect from April 1.
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About The Author

sangeeta-ojha.webp
Sangeeta Ojha is a business and finance journalist with experience across leading media platforms like Mint and India Today. She has built a reputation for covering a wide range of personal finance topics, including income tax, mutual funds, insurance, savings and investing.

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