The Income Tax framework in India has undergone major changes with the introduction of the Income Tax Act, 2025 and Income Tax Rules, 2026. One of the most significant updates relates to PAN (Permanent Account Number) quoting requirements, transaction reporting limits, and compliance procedures.
These changes aim to simplify compliance for genuine taxpayers while increasing monitoring of high-value financial transactions. The government has revised several monetary thresholds, expanded reporting obligations, and replaced Form 60 with the newly introduced Form 97.
Here’s a detailed breakdown of the important PAN Rules 2026 updates and how they may impact individuals, businesses, investors, and property buyers.
PAN quoting means providing your PAN number while carrying out specified financial transactions. The Income Tax Department uses PAN to track high-value transactions and ensure transparency in tax reporting.
Under the new rules, several thresholds have been revised upward, providing relief in some areas while tightening compliance in others.
The threshold for mandatory PAN quoting in property transactions has been increased significantly.
PAN was mandatory for property transactions above ₹30 lakh.
The threshold has now been increased to ₹45 lakh.
The rules now specifically include:
This means PAN will be compulsory for all eligible property transactions exceeding ₹45 lakh, including gifted property arrangements and development agreements.
This change provides relief for smaller property transactions while ensuring better reporting for high-value real estate deals.
The government has introduced separate thresholds based on whether PAN is available or not.
Individuals without PAN may face stricter limits while conducting foreign exchange transactions, encouraging wider PAN compliance.
Cash transaction monitoring has become more structured under the new rules.
PAN was required for cash deposits exceeding ₹50,000 in a single day.
PAN is now mandatory for annual cash withdrawals exceeding ₹10 lakh.
This offers operational convenience for regular banking users while improving monitoring of large cash movements.
These revised limits apply to cash payments made for:
The revised rules now apply even if instruments are purchased through non-cash methods.
The ₹10 lakh threshold is applicable irrespective of the mode of payment.
Digital purchases are now also covered under reporting requirements.
The government has relaxed PAN requirements in some commonly used areas.
PAN is no longer mandatory for debit card applications.
This reduces documentation requirements for banking customers.
₹1 lakh per transaction
The scope now includes:
Luxury events and hospitality payments will now fall under wider reporting requirements.
PAN is mandatory for sale or purchase of motor vehicles exceeding ₹5 lakh.
The rule now includes:
The government aims to improve tracking of high-value automobile purchases.
Previously, PAN quoting was separately required for foreign travel packages and foreign currency purchases.
These are no longer independently covered categories under PAN quoting rules.
This simplifies compliance for travellers.
The Income Tax Department has widened the list of reportable financial activities.
Transactions through Stock Holding Corporation of India Limited are now reportable.
Insurance-related payments are now under enhanced reporting.
Large insurance premium payments will now be closely monitored.
One of the most important compliance changes is the replacement of Form 60.
Form 60 was used by individuals who did not possess a PAN but needed to undertake specified financial transactions.
Rule 159 introduces Form No. 97 in place of Form 60.
For immovable property transactions exceeding ₹45 lakh:
This means individuals involved in high-value property transactions must obtain PAN compulsorily.
The PAN Rules 2026 aim to achieve multiple objectives:
The government can track high-value transactions more effectively.
Higher thresholds reduce unnecessary paperwork for smaller transactions.
Non-cash and digital transactions are now increasingly covered.
The rules encourage more individuals to obtain PAN and become tax-compliant.
The PAN Rules 2026 aim to achieve multiple objectives:
The government can track high-value transactions more effectively.
Higher thresholds reduce unnecessary paperwork for smaller transactions.
Non-cash and digital transactions are now increasingly covered.
The rules encourage more individuals to obtain PAN and become tax-compliant.
These changes are especially important for: