New Delhi: After the announcements in Budget 2026, the government has released draft Income Tax Rules under the upcoming Income Tax Act, 2025, proposing several changes to when quoting a Permanent Account Number (PAN) will be mandatory. The Central Board of Direct Taxes (CBDT) has invited public feedback before finalising the rules.
One of the key proposals is related to cash transactions with banks. Under the draft rules, PAN will be required only when cash deposits or withdrawals total Rs 10 lakh or more in a financial year across one or more bank accounts. Currently, PAN must be quoted for cash deposits above Rs 50,000 in a single day with a bank or cooperative bank.
The government has also proposed changes affecting the hospitality and events sector. PAN would be required only if hotel or restaurant bills, banquet hall payments, convention centre charges, or event-management payments exceed Rs 1 lakh. At present, the PAN requirement applies once such payments cross Rs 50,000.
For property transactions, the threshold for quoting PAN in the purchase, sale, gift, or joint-development agreement of immovable property may increase from Rs 10 lakh to Rs 20 lakh.
The draft rules also propose changes in other areas. PAN would be required for opening an account-based relationship with an insurance company, and new reporting requirements may apply to crypto exchanges, which could be asked to share transaction information with the Income Tax Department. The rules also recognise Central Bank Digital Currency (CBDC) as an accepted electronic payment mode.
These changes are expected to come into effect when the new Income Tax Act, 2025, is implemented from 1 April 2026, after stakeholder consultations and final notification of the rules.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
