Important PAN Card quoting changes: Draft income tax rules 2026 revises cash withdrawals & deposit, property transactions limits – check top details
Draft Income Tax Rules 2026: The Income Tax Department has released a new set of draft income tax rules, which once finalised, will be applicable for financial year 2026-27. There are several changes in the draft income tax rules that impact the way you pay income tax, withdraw cash, pay in cash etc. and the need to quote your PAN card number for a variety of transactions.Following the release of the draft rules, the government has invited comments and suggestions from stakeholders, with February 22, 2026 set as the deadline for submitting feedback. After reviewing the responses received, the revised rules will be finalised, formally notified, and are expected to take effect from April 1, 2026.Under the proposed framework, the threshold limits for several transactions requiring PAN Card details to be disclosed have undergone a change.
Draft Tax Rules 2026: Changes in Mandatory PAN Card Quoting
One of the main changes related to mandatory quoting of PAN Card relates to the limit for quoting PAN in transactions involving the purchase or sale of immovable property has been raised from Rs 10 lakh to Rs 20 lakh.Also Read | Draft Income Tax Rules 2026 explained: How you can save Rs 1.41 lakh tax outgo – top points on HRA, PAN changes Similarly, the requirement to disclose PAN for cash deposits has been modified, increasing the threshold from Rs 50,000 in a single day to cash deposits of Rs 10 lakh or more during a financial year in a bank, cooperative bank, or post office. Mandatory Quoting of PAN – Rule 159 (earlier Rule 114B)
Table source: Grant Thornton BharatThe draft also proposes that PAN Card details be shared if the total cash withdrawals reach Rs 10 lakh or more in a financial year across one or multiple accounts held by an individual.Cash depositsUnder the current rules, PAN must be quoted when cash deposits of more than Rs 50,000 in a single day at a bank or post office are made. The draft income tax rules seek to revise this by introducing a higher threshold, requiring PAN details to be shared when total cash deposits are of Rs 10 lakh or more during a financial year across multiple accounts. The same annual limit has also been proposed for cash withdrawals, making PAN mandatory once withdrawals reach Rs 10 lakh in a financial year.Purchase of motor vehiclesIf you buy a motor vehicle at present, the PAN Card details are required for all, excluding motorcycles. However, as per the proposed new income tax rules, PAN disclosure is compulsory only when the value of your motor vehicle or motorcycle is over Rs 5 lakh.Hotel and restaurant paymentsCurrently, PAN must be provided for payments made towards hotel or restaurant bills of over Rs 50,000. The draft rules suggest increasing this threshold to Rs 1 lakh.Transactions involving immovable propertyExisting regulations require PAN to be quoted for property transactions valued above Rs 10 lakh. The proposal recommends raising this limit to Rs 20 lakh.Insurance policiesAt present, PAN Card details are required when insurance premium payments are made above Rs 50,000. The draft income tax rules broaden this requirement. They extend the need for PAN Card to any account-based relationship maintained with insurance companies.
