PAN rules eased: Big transactions get simpler under new income tax draft

New Delhi (The Uttam Hindu) : The government has released a draft of the Income Tax Rules, which proposes several major changes to the new Income Tax Rules 2026. These new rules include changes to bank deposits and withdrawals, vehicle purchases, hotel bills, and providing PAN numbers for property purchases.

According to the new draft income tax rules, individuals will not be required to provide a PAN number if they deposit or withdraw up to ₹10 lakh from one or more accounts in a year. Currently, a PAN is required for deposits of ₹50,000 or more in a single day at any bank.

The draft also changes vehicle purchase rules, proposing to make providing a PAN number mandatory for vehicles (including two-wheelers) purchased over ₹5 lakh. Currently, providing a PAN number is not required for two-wheelers of any value, but is required for any other vehicle purchase.

The draft of the new Income Tax rules also has a major change for the hospitality sector. PAN number is not required for payments of up to Rs 1 lakh at hotels, restaurants, or banquet halls. Currently, PAN number is required for payments of Rs 50,000 or more. This draft also changes property-related rules. The proposed rules do not require PAN number for property purchases worth up to Rs 20 lakh, whereas the current limit is Rs 10 lakh.

Under the new income tax rules, a PAN card will be mandatory for opening an account with an insurance company. Currently, a PAN card is required for payments exceeding ₹50,000 in a financial year, including life insurance premiums. Once the new income tax rules are finalized, the new Income Tax Act, 2025, is set to come into effect on April 1, 2026. Reports suggest a notification could come next month.