The government has introduced major changes to PAN-related financial rules under the new Income Tax Rules 2026, bringing relief in smaller transactions while tightening monitoring on high-value financial activities. The revised rules will impact property purchases, cash deposits and withdrawals, insurance premiums, hotel payments, foreign exchange transactions and vehicle purchases.
One of the biggest changes is the replacement of Form 60 with the newly introduced Form 97 for individuals who do not have a PAN card. The government says the new rules are aimed at simplifying low-risk transactions while increasing transparency and surveillance on large financial dealings to curb tax evasion.
RELIEF IN CASH DEPOSIT RULES
In a major relief for bank customers, PAN details will no longer be required for cash deposits above Rs 50,000 in a single day.
New Cash Deposit Reporting Limits:
Earlier reporting limit: Rs 2.5 lakh annually
New reporting limit: Rs 10 lakh annually
Banks may now report cash deposits to the Income Tax Department only if yearly deposits cross Rs 10 lakh.
However, stricter monitoring has been introduced for large cash withdrawals.
PAN Monitoring on Cash Withdrawals:
Cash withdrawals above Rs 10 lakh in a financial year may now come under PAN-based reporting rules.
PROPERTY TRANSACTION RULES REVISED
The government has also revised PAN-related rules for property purchases and sales.
New Property PAN Threshold:
Earlier limit: Rs 10 lakh
New limit: Rs 20 lakh
This means PAN details may not be required for smaller property deals below Rs 20 lakh.
Property Reporting Limit Increased:
Earlier reporting threshold: Rs 30 lakh
New reporting threshold: Rs 45 lakh
PAN MANDATORY FOR PROPERTY DEALS ABOVE RS 45 LAKH
While smaller transactions have been relaxed, the government has tightened rules for high-value property transactions.
Under the New Rules:
PAN will be compulsory for property deals above Rs 45 lakh
Form 97 will not be accepted for such transactions
Gift deeds and Joint Development Agreements (JDAs) will also come under stricter monitoring
Earlier, many individuals used Form 60 for property transactions without PAN. That flexibility has now been removed for expensive property deals.
CHANGES IN FOREIGN TRAVEL AND FOREX RULES
The government has also modified PAN reporting categories related to foreign travel expenses and foreign exchange purchases.
The separate PAN category for overseas travel and forex transactions has reportedly been removed
Transactions above Rs 2 lakh may still be reported under the broader purchase of goods and services category
Separate reporting thresholds may apply for PAN and non-PAN holders
INSURANCE PREMIUMS UNDER STRICTER SCRUTINY
Insurance companies will now have to report high-value premium payments to the Income Tax Department.
New Insurance Reporting Rules:
For PAN holders:
Premium payments above Rs 5 lakh will be reported
For non-PAN holders:
Premium payments above Rs 2.5 lakh will come under reporting rules
The move is expected to improve tracking of high-value insurance investments and premium payments.
STAMP PAPER PURCHASES UNDER SCANNER
The government has also tightened monitoring of stamp paper purchases.
Reporting Threshold for Stamp Paper Purchases:
For PAN holders:
Transactions above Rs 2 lakh may be monitored
For individuals without PAN:
Monitoring may begin above Rs 1 lakh
HOTEL AND EVENT PAYMENTS TO FACE CLOSER MONITORING
Large cash payments made at hotels, banquet halls, restaurants, convention centres and event venues will now face stricter scrutiny.
PAN Threshold Increased:
Earlier threshold: Rs 50,000
New threshold: Rs 1 lakh
The government is particularly focusing on high-value wedding and event expenditures where large cash transactions are common.
VEHICLE PURCHASE RULES EXPANDED
The PAN requirement for purchasing vehicles priced above Rs 5 lakh will continue under the new rules.
Important Changes:
PAN mandatory for vehicles above Rs 5 lakh
Two-wheelers now included
Tractors excluded from the category
CHANGES IN BANK DRAFT AND PAY ORDER RULES
The government has also relaxed daily PAN submission requirements for bank drafts, pay orders and banker’s cheques.
What Has Changed:
Daily PAN submission requirement removed
Annual monitoring and reporting to continue
FORM 60 REPLACED BY FORM 97
One of the biggest structural changes under the Income Tax Rules 2026 is the removal of Form 60.
The government has now introduced Form 97 for people who do not have a PAN card. However, Form 97 will not be valid for property transactions above Rs 45 lakh, where PAN will remain compulsory.
According to the government, the revised PAN rules are aimed at reducing compliance burden for smaller transactions while increasing scrutiny on large financial dealings across banking, real estate, insurance, hospitality and automobile sectors.
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