The draft Income Tax rules for 2026 introduce taxpayer-friendly tweaks, primarily elevating PAN disclosure limits for everyday high-value transactions. Released recently, they cover deposits, vehicle buys, hotel stays, property deals, and insurance.
Bank users get major relief—no PAN needed for combined yearly deposits/withdrawals up to ₹10 lakh, versus the stringent current daily ₹50,000 rule. This fosters smoother cash flows for families and small businesses.
Buying vehicles? PAN kicks in only above ₹5 lakh, now encompassing two-wheelers too—a change from their prior blanket exemption. Four-wheelers already followed similar norms.
Diners and event planners rejoice: hospitality payments under ₹1 lakh escape PAN, raised from ₹50,000. It’s a boon for India’s booming tourism and wedding sectors.
Property purchases up to ₹20 lakh are PAN-free, up from ₹10 lakh. Contrastingly, insurance firms will require PAN for new accounts, surpassing the existing yearly ₹50,000 payment trigger.
Set to launch via Income Tax Act, 2025 on April 1, 2026, these proposals signal modernization. With notifications imminent, stakeholders anticipate fewer hassles and sharper black money checks.