India Business Journal - Draft Income Tax rules raise limits across financial transactions for quoting PAN

MONEY

Draft Income Tax rules raise limits across financial transactions for quoting PAN

IBJ Bureau
Feb 10, 2026

Draft Income Tax (I-T) Rules, 2026, have proposed 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.

These changes are set to help people by significantly easing compliance for everyday financial transactions.

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

For motor vehicle purchases, including two-wheelers, PAN will be required only if the purchase price exceeds Rs 5 lakh. Currently, PAN is mandatory for all motor vehicle purchases regardless of value, while two-wheelers are excluded.

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 Rs 1 lakh, compared with the existing threshold of Rs 50,000.

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