Big Changes In PAN Threshold Explained: Cash, Property, Car & Insurance Under Draft IT Rules 2026
Big relief is coming for cash transactions and everyday financial deals. The Central Board of Direct Taxes has released the Draft Income Tax Rules 2026, proposing higher thresholds for quoting PAN across a range of transactions — from bank cash deposits and property deals to car purchases and hotel bills. Under the draft rules, PAN will no longer be required for small cash deposits, modest property transactions, or routine spending. Instead, the focus shifts to high-value and aggregate annual transactions, helping reduce paperwork for the ‘aam aadmi’ while keeping large money trails visible to tax authorities. However, the rules also tighten compliance in certain areas. PAN will now be mandatory for all life insurance premium payments, aligning with recent tax changes on high-value ULIPs. These rules are still open for public feedback, but if notified, they are expected to kick in from April 1. Here’s a quick, visual breakdown of what’s changing — and what it means for you.
Big relief is coming for cash transactions and everyday financial deals. The Central Board of Direct Taxes has released the Draft Income Tax Rules 2026, proposing higher thresholds for quoting PAN across a range of transactions — from bank cash deposits and property deals to car purchases and hotel bills. Under the draft rules, PAN will no longer be required for small cash deposits, modest property transactions, or routine spending. Instead, the focus shifts to high-value and aggregate annual transactions, helping reduce paperwork for the ‘aam aadmi’ while keeping large money trails visible to tax authorities. However, the rules also tighten compliance in certain areas. PAN will now be mandatory for all life insurance premium payments, aligning with recent tax changes on high-value ULIPs. These rules are still open for public feedback, but if notified, they are expected to kick in from April 1. Here’s a quick, visual breakdown of what’s changing — and what it means for you.
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