PAN Card Update: PAN Card May Not Be Mandatory for Properties Up to Rs 20 Lakh

In a significant PAN Card update , the Income Tax Department has proposed a major relaxation in property transaction rules . If the draft income tax provisions are approved, a PAN Card may not be mandatory for properties up to Rs 20 lakh, offering relief to small buyers, especially in affordable housing markets.

The move is part of the proposed changes under the new income tax regime and is currently open for public consultation.

What Is the New Rule on PAN for Property Transactions?

Under existing rules, quoting a PAN is mandatory for buying or selling immovable property valued above Rs 10 lakh. The new draft proposes increasing this limit to Rs 20 lakh.

If implemented:

• PAN will not be required for property transactions below Rs 20 lakh.
• PAN will remain compulsory for transactions worth Rs 20 lakh or more.

This change is aimed at reducing compliance pressure on buyers purchasing low-value properties, particularly in smaller towns and semi-urban areas.

PAN to Cover Gifts and Joint Development Agreements

The revised draft does not limit the PAN requirement to just buying and selling. It also includes other types of property-related transactions such as gifting of immovable property and joint development agreements.

However, the Rs 20 lakh threshold will continue to apply in these cases. This means PAN will only be required if the value of the property involved is Rs 20 lakh or above.

Why Has the Government Proposed This Change?

Over the years, property prices have risen significantly. Even modest homes in many cities now cost more than Rs 10 lakh, making the earlier limit outdated.

Tax experts believe the revised threshold better reflects current market realities. The proposal is expected to:

• Reduce paperwork for small property buyers
• Ease transaction processes in affordable housing segments
• Align compliance norms with present-day real estate values

The move could especially benefit buyers in tier-2 and tier-3 cities where property transactions often fall within this range.

What Has Not Changed?

While the limit has been proposed for revision, the monitoring mechanism for high-value transactions remains intact.

PAN will continue to be mandatory for property deals worth Rs 20 lakh or more. This ensures that the tax authorities can still track large transactions and match them with declared income, maintaining transparency in the system.

Stricter PAN Application Rules for Companies

Apart from property-related changes, the draft rules also tighten the PAN application process for companies.

Key proposed measures include:

• A mandatory declaration confirming the company does not already have a PAN
• Internal checks at branch and project office levels
• Safeguards to prevent duplication of PAN allotment

These steps are aimed at strengthening compliance and preventing misuse.

When Will the New PAN Rule Be Implemented?

The proposed changes are currently in draft form. The government has invited suggestions from stakeholders and the public. Final rules will be notified only after reviewing the feedback.

If approved, this PAN Card update could significantly simplify property transactions for small buyers while ensuring strict oversight of higher-value deals.