In a move to reduce paperwork for common citizens, India’s Income Tax Department has released draft rules proposing key relaxations on PAN requirements for substantial financial activities. Effective from April 2026, these updates target banks, real estate, autos, and hotels.
Banking sees the biggest overhaul: annual deposits or withdrawals up to ₹10 lakh across accounts dodge PAN mandates, a leap from today’s daily ₹50,000 cap. This accommodates legitimate savings without incessant reporting.
For cars and bikes, the draft sets a uniform ₹5 lakh threshold for PAN on purchases, including two-wheelers—previously exempt irrespective of price. It levels the playing field across vehicle types.
Hospitality businesses benefit as PAN is waived for bills below ₹1 lakh at hotels, eateries, or event venues, doubling the current exemption from ₹50,000. Frequent business travelers stand to gain most.
Real estate transactions up to ₹20 lakh skip PAN, doubling the existing limit. However, insurance account openings demand it outright, unlike the prior ₹50,000 annual premium threshold.
As the Income Tax Act, 2025 nears finalization, these changes promise efficiency. Expected notifications soon could finalize a taxpayer-friendly regime, blending ease with anti-evasion measures.