Draft income tax rules: Key PAN rules changes you need to know

The draft Income Tax Rules 2026 will bring in some changes regarding when a Permanent Account Number (PAN) card will be needed to be shown. The changes will be part of new Income Tax Act, 2025, which will start on April 1, 2026.

Here are key changes in PAN rules you need to know:

Cash deposit and withdrawal:

As per new rules, you will not need PAN for cash deposit over Rs 50,000 per day. Instead, the PAN will be needed if the total cash deposit or withdrawal is Rs 10 lakh in a year.

Buying vehicles:

Currently, a PAN is needed for every vehicle purchase, however, under the new rules, it will be needed only if the vehicles, including high-end bikes, are over Rs 5 lakh.

Hotel, event bills:

Now you need not show your PAN for every payment that you make to hotels, restaurants or banquet halls. Under the new rule, PAN will be required only if the total bill is over Rs 1 lakh.

Currently, the PAN is required if the bill is over Rs 50,000.

Real estate:

Currently for transactions in real estate, a PAN is needed for Rs 10 lakh of purchase, sale or joint development of immovable properties. As per the revision the PAN threshold will be raised to Rs 20 lakh.

Insurance:

In insurance sector, a PAN is mandatory regardless of the amount. PAN will be required while opening an account with insurance company. Currently, PAN is needed only if life insurance premiums are above Rs 50,000 in a year.