Income Tax Rules 2026: New PAN Limits for Cash Transactions, Property, and Hotels

The Central Board of Direct Taxes ( CBDT ) has released the Draft Income Tax Rules , 2026, inviting public comments until February 22, 2026. These proposed rules are set to replace the decades-old Income-tax Rules, 1962, and aim to simplify compliance for routine financial transactions while tightening monitoring of high-value dealings. The changes are designed to reduce paperwork for ordinary taxpayers while ensuring transparency for significant transactions.

Here’s a detailed look at the key PAN-related changes that could impact you:

1. Cash Deposits and Withdrawals

Under the draft rules, PAN will be mandatory for aggregate annual cash deposits or withdrawals of Rs 10 lakh or more across all bank accounts. Currently, PAN is required only for deposits exceeding Rs 50,000 in a single day, with no specific rules for withdrawals. The revised threshold significantly eases documentation for smaller transactions, allowing taxpayers to manage day-to-day banking with less hassle.

2. Motor Vehicle Purchases

The draft rules revise PAN requirements for vehicle purchases, excluding lower-priced vehicles. Currently, all motor vehicles above Rs 5 lakh, including motorcycles, require PAN. The new rules aim to rationalise compliance, providing relief for buyers of moderately priced cars while maintaining oversight for high-value vehicles.