PAN Card New Rules 2026 : The Central Government has Issued New Rules Regarding PAN Cards. Everyone needs to Know.

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PAN Card New Rules : Several rules related to PAN cards are set to change. Recently, the Central Government released the draft of the New Income Tax Rules 2026. According to this draft, quoting PAN will become mandatory if the total cash deposit or withdrawal in one or more bank accounts of an individual reaches ₹10 lakh or more during a financial year.

At present, PAN is required only when cash deposits exceed ₹50,000 in a single day.

Changes in PAN Requirement for Purchase of Motor Vehicles

There has also been a revision in the limit for quoting PAN while purchasing motor vehicles.

  • Earlier, PAN was mandatory only if the vehicle cost exceeded ₹5 lakh, including motorcycles.
  • Under current rules, there is no requirement to provide PAN when purchasing two-wheelers.
  • As per the proposed changes, PAN will be mandatory for the purchase of motor vehicles regardless of the price.

Impact on Hospitality and Event Management Sector

The new rules will also affect the hospitality and event management sectors.

  • PAN will be compulsory for payments exceeding ₹1 lakh made toward:
    • Hotel or restaurant bills
    • Convention centres
    • Banquet halls
    • Event management services

Currently, this limit is ₹50,000.

Property Transactions Threshold May Increase

The government has proposed increasing the PAN requirement threshold for property-related transactions.

  • Present limit: ₹10 lakh for purchase, sale, gift, or joint development agreements.
  • Proposed limit: ₹20 lakh.

PAN Mandatory for Insurance Account Relationships

PAN will also be required to start account-based relationships with insurance companies.

  • Currently, PAN is mandatory only when annual premium payments exceed ₹50,000.
  • Under the draft rules, PAN will be required regardless of the payment amount when establishing such relationships.

When Will the New Income Tax Act Come Into Effect?

The New Income Tax Act, 2025 is scheduled to come into force from 1 April 2026.

According to reports, the Finance Ministry has indicated that after consultations with stakeholders, the rules will be finalized and officially notified by the first week of March.

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