PAN Card Rules 2026: Where PAN Requirement Has Been Relaxed And Where It Is Mandatory?

The Central Board of Direct Taxes (CBDT) has notified the new Income Tax Rules, 2026, bringing several changes to PAN card requirements for financial transactions. Under the revised rules, PAN requirements have been relaxed for certain transactions, while they have been made stricter for others to improve monitoring of high-value dealings.

Here's a look at where PAN rules have been relaxed and where they remain mandatory.

PAN Card Rules Relaxed For The Following Transactions

Cash deposits

Earlier, quoting PAN details was mandatory for cash deposits exceeding Rs 50,000 in a single day. Under the new rules, this requirement has now been relaxed.

Vehicle purchases

Previously, PAN was generally required for most vehicle transactions regardless of the vehicle's value. The revised rules now introduce a value-based threshold. PAN will only be mandatory if the vehicle costs more than Rs 5 lakh.

Cash payments for bank drafts and pay orders

Cash payments made for bank drafts, pay orders, and banker's cheques will no longer require PAN quoting on a daily transaction basis. However, annual monitoring rules will continue to apply.

PAN Card Limit Increased

Property transactions

From April 1, PAN will be required only when the value of the property transaction exceeds Rs 20 lakh, compared to the earlier threshold of Rs 10 lakh.

High-value bills at hotels, restaurants, and events

The PAN requirement threshold for cash payments at hotels, restaurants, or events has also been increased. PAN will now be needed only for cash payments exceeding Rs 1 lakh, instead of the earlier Rs 50,000 limit.

PAN Card Mandatory For The Following Transactions

Cash deposits or withdrawals

PAN quoting will continue to be mandatory for cash deposits or withdrawals exceeding Rs 10 lakh in a financial year.

Insurance purchases

PAN will now be compulsory while purchasing any insurance policy, irrespective of the premium amount. Earlier, this requirement applied only when the annual premium exceeded Rs 50,000.

High-value property transactions

For property deals exceeding Rs 45 lakh, buyers or parties involved must have a PAN card. Earlier, such transactions could often be completed using Form 60, but this relaxation has now been removed for high-value property transactions.

Foreign travel and foreign currency purchase

PAN will be mandatory for:
•Cash payments exceeding Rs 50,000 for foreign travel, or
•Purchase of foreign currency exceeding Rs 50,000 at one time.

Time deposits

PAN will be required for time deposits exceeding Rs 50,000 or aggregating to more than Rs 5 lakh in a financial year with:
•A banking company or co-operative bank
•A Post Office
•A Nidhi company referred to under Section 406 of the Companies Act, 2013
•A non-banking financial company (NBFC)

Investments and securities transactions -

PAN will be required for payments exceeding Rs 50,000 made to mutual funds for purchasing units. Similarly, PAN must be quoted for payments above Rs 50,000 made to a company or institution for purchasing debentures or bonds issued by them.