- The Government of India has introduced new rules related to the Permanent Account Number (PAN). The Central Board of Direct Taxes (CBDT) has announced these modifications which fall under the Income Tax Act-2025 and the Income Tax Rules-2026.
- The new limits will begin on April 1. The updated regulations establish new financial thresholds for transactions while requiring multiple financial activities to report Permanent Account Number information.
Cash Transactions Above ₹10 Lakhs
People need to provide their Permanent Account Number information when their cash deposits and withdrawals reach ₹10 lakhs or higher during a financial year.
The following points summarize the main information:
- The rules apply to both deposit and withdrawal transactions
- People can use one transaction or multiple transactions to complete their banking activities
- The system tracks banking activities that occur in different financial institutions
Companies only needed to check Permanent Account Number status when their total cash transactions for the day reached ₹50,000.
Real Estate Transactions
People need to provide their Permanent Account Number for all property transactions that involve assets worth more than ₹20 lakhs.
This rule applies to:
- Property acquisitions
- Property dispositions
- Property gifts
- Joint development agreements
The previous limit began at ₹10 lakhs which now requires an increase because property values have risen.
Motor Vehicle Purchases
People now need to provide their Permanent Account Number when they buy motor vehicles that cost more than ₹5 lakhs.
The main changes include:
- The regulation extends to both two-wheeled and four-wheeled vehicles
- The regulation establishes a precise monetary threshold for its implementation
Earlier:
- Permanent Account Number requirements applied to all cars
- The rule did not apply to two-wheeled vehicles
- Hotel, Restaurant, and Event Payments
People need to submit their Permanent Account Number when they make total payments that go beyond ₹1 lakh.
The regulation covers:
- Hotels
- Restaurants
- Event management companies
- Convention centers
The previous threshold for payments was set at ₹50,000.
Insurance Premium Payments
Insurance companies now require all customers to submit their Permanent Account Number for all insurance policies which now include all premium amounts.
Earlier:
- PAN was required only if annual premium exceeded ₹50,000
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