Categories: Tax Planning

Revised PAN Transaction Limit Applicable from 1.04.2026

New Permanent Account Number Quoting Rules Effective from 1 April 2026

The tax dept has introduced revised thresholds for quoting the Permanent Account Number in specified financial transactions. The objective is to simplify compliance for routine transactions while strengthening the reporting framework for high-value transactions. The following are changes in permanent account number requirements:

Nature of Transaction Permanent Account Number Existing Limit (up to 31 March 2026) New limit the Permanent Account Number (from 1 April 2026)
Cash withdrawals from bank/post office INR 20,00,000/- or more in a financial year INR 10,00,000/- or more in a FY
Cash deposits in bank/post office Above INR 50,000/-   in a single day Above INR 1,000,000/- in a FY
Immovable property transactions Above INR 10,00,000/- Above INR 20,00,000/-
Sale/Purchase of motor vehicles the Permanent Account Number required for most vehicles except two-wheelers PAN required for vehicles above INR 500,000/- (including motorcycles; tractors excluded)
Cash payment at hotels/restaurants Above INR 50,000/-  at one time Above INR 1,00,000/-

These revised thresholds are applicable from 1 April 2026 under the Income-tax Rules, 2026. Taxpayers should review their transaction patterns and ensure compliance with the new Permanent Account Number reporting requirements.

What Businesses and Taxpayers Should Know

  • Greater emphasis on annual aggregate transactions rather than individual daily transactions.
  • Higher threshold for property transactions provides relief for moderate-value transactions.
  • Revised rules aim to improve tracking of significant cash transactions through Permanent Account Number-based reporting.
  • Income Tax: Taxpayers should ensure their Permanent Account Number, Aadhaar, and bank accounts are properly linked to avoid compliance issues.

Why the Permanent Account Number Compliance is Important

  • Helps maintain a transparent financial trail.
  • Reduces the risk of tax scrutiny and reporting mismatches.
  • Facilitates seamless reporting of high-value transactions.
  • Avoids penalties for non-compliance with the Permanent Account Number quoting requirements.
Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

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