Draft Income-Tax Rules 2026: Transactions Which Will Require Mandatory PAN Quoting

Draft Income-Tax Rules 2026 and PAN Quoting: The Income Tax Department has released new draft income tax rules under the New Income Tax Act. Under these new rules, you will get to see several changes in the draft rules pertaining to the requirement of PAN cards. With these changes, your PAN card will be quoted in certain high-value transactions. These new rules will replace the rules framed under the old Income Tax Rules, 1962. While these changes might seem overwhelming or unnecessary to some, they are part of a broader overhaul of India's tax regime. With the implementation of these new changes, the government aims to make the process 

What Are the Draft Income-Tax Rules 2026?

The Indian government has been discussing major changes under the income tax rules. Their aim is to make the process more transparent for all taxpayers. These new rules mentioned below are still under discussion and haven’t been finalised yet. You will get the official new rules under the New Income Tax Act by April 1, 2026. 

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Draft Income-Tax Rules 2026: PAN Cards And Financial Transactions

Here are all the fields in which your PAN card will be quoted if the draft income tax rules get finalised: 

1. Immovable Property Transactions: Under the new Income Tax rules, your PAN is required for property transactions exceeding Rs 20 lakh, which is up from Rs 10 lakh. This will include property purchase, sale, gift, or joint development agreements.

2. Motor Vehicle Purchase: Your PAN will now be required for motor vehicle purchases exceeding Rs 5 lakh. This includes two-wheelers that have been exempted so far, but tractors still remain excluded from this change. People buying premium bikes or expensive cars will need to quote your PAN.

3. Cash Deposits and Withdrawals: Your PAN will be required for aggregate cash deposits or withdrawals exceeding Rs 10 lakh in a financial year, across all your accounts. Under existing rules, it's required for cash deposits over Rs 50,000 in a day at a bank or post office. With this new rule,  the government believes that taxpayers and small cash-intensive businesses will benefit. 

4. Hotel and Restaurant Payments: For cash payments exceeding Rs 1 lakh, which is up from Rs 50,000, you will now be required to show your PAN card. The idea behind this change in rules is to reduce unnecessary PAN quoting for moderate spending while still tracking high-value expenses being made. 

5. Insurance Account Relationship: Your PAN will be required to initiate an account-based relationship with insurance companies, irrespective of the premium amount.

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These rules are still in draft proposals and are currently under consultation. We will keep you updated when the rules have been finalised and officially announced by the Income Tax Department. 

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