The Central Government of India is planning to simplify and relax PAN card (Permanent Account Number) requirements for everyday financial transactions, according to the draft Income‑Tax Rules, 2026 released by the Finance Ministry. If the proposals are finalized and notified, people will no longer need to show their PAN card for many routine transactions such as bank deposits, hotel bills, and more — easing compliance burdens in daily life.
📌 Why This Change Is Being Proposed
The draft rules have been introduced to make the tax system easier for ordinary taxpayers and reduce the repetitive need to present PAN for smaller‑value transactions. At present, PAN often needs to be quoted for a wide variety of financial activities, even for relatively modest amounts, which many people find cumbersome.
📉 What Transactions May No Longer Require PAN
Under the proposed draft rules, the thresholds for mandatory PAN quoting would be significantly increased:
- Cash Deposits/Withdrawals: Previously, PAN was needed for cash deposits above ₹50,000 in a single day. Now, PAN quoting may only be required if total deposits or withdrawals in a financial year exceed ₹10 lakh.
- Hotel, Restaurant, and event Bills: PAN currently required for bills over ₹50,000 may be raised to ₹1 lakh or more before PAN is needed.
- Property Transactions: The PAN threshold for sale or purchase of property might be increased from ₹10 lakh to ₹20 lakh.
- Vehicle Purchases: PAN may only be required if the value of the vehicle exceeds ₹5 lakh, whereas earlier it was mandatory for cars regardless of price.
These changes aim to cut down unnecessary reporting for low‑value transactions, making daily expenses and banking simpler for citizens.
🧾 Where PAN Still Remains Mandatory
Even with these relaxed thresholds, quoting PAN will still be required for:
- High‑value cash dealings over annual ₹10 lakh limits.
- Large purchases like expensive cars or big property deals.
- Certain financial and investment activities, as specified in tax laws.
🗓️ When Could These Rules Come Into Force?
The changes are part of draft rules associated with the new Income‑Tax Act, 2025 and could be finalized by March 2026. They are expected to come into effect from April 1, 2026, replacing older compliance requirements under previous tax regulations.
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