The government has released draft Income Tax Rules under the upcoming Income Tax Act, 2025, proposing higher thresholds for mandatory quoting of Permanent Account Number (PAN) across several transactions. The Central Board of Direct Taxes (CBDT) has invited public feedback before finalizing the rules.
One of the key proposals relates to cash transactions with banks. PAN will be required only if total cash deposits or withdrawals reach ₹10 lakh or more in a financial year across one or multiple bank accounts. Currently, PAN is mandatory for cash deposits above ₹50,000 in a single day.
The draft rules also ease PAN requirements in the hospitality and events sector. PAN would be needed only if hotel or restaurant bills, banquet hall charges, convention Centre fees or event-management payments exceed ₹1 lakh, compared with the existing ₹50,000 threshold. For property transactions, the proposed threshold for quoting PAN in purchase, sale, gift or joint-development agreements of immovable property has been raised from ₹10 lakh to ₹20 lakh.
Other changes include mandatory PAN for opening account-based relationships with insurance companies, new reporting obligations for crypto exchanges, and formal recognition of Central Bank Digital Currency (CBDC) as an accepted electronic payment mode. The revised rules are expected to take effect from April 1, 2026, after stakeholder consultations and final notification.
Income Tax Draft Rules Ease PAN Requirement for Cash, Hospitality and Property Deals
