New Delhi, February 10 – The government has unveiled a draft of revised Income Tax rules set to reshape financial transactions starting 2026. These proposed changes aim to simplify high-value dealings by raising thresholds for mandatory PAN card submissions across banking, property, vehicles, and hospitality sectors.
Currently, depositing or withdrawing over ₹50,000 in a single day at any bank requires a PAN. The new draft relaxes this to ₹10 lakh aggregate deposits and withdrawals across one or multiple accounts in a financial year, freeing smaller transactions from scrutiny.
Vehicle purchases see a significant shift too. Buying any two-wheeler or four-wheeler exceeding ₹5 lakh will now mandate PAN disclosure. Previously, only non-two-wheelers needed it, regardless of value.
In hospitality, hotel bills, restaurant payments, or banquet hall bookings under ₹1 lakh won’t require PAN, up from the current ₹50,000 limit. This eases burdens on everyday travelers and diners.
Property buyers gain relief with the PAN threshold hiked to ₹20 lakh from ₹10 lakh. Additionally, opening accounts with insurance companies will necessitate PAN, tightening oversight there.
These reforms under the forthcoming Income Tax Act, 2025, are slated for enforcement from April 1, 2026. Notifications could arrive next month, signaling a balanced approach to compliance and convenience. Taxpayers should prepare for a more streamlined yet vigilant system.