The government has released a draft of the Income Tax Rules 2026, proposing major changes that will affect bank transactions, vehicle purchases, hotel bills, and property deals.
These changes aim to simplify tax compliance while ensuring transparency.
Changes to Bank Transactions and PAN Requirements
Under the new draft rules, you won’t need to provide a PAN card for deposits or withdrawals up to ₹10 lakh per year across all your accounts.
Currently, a PAN is required for deposits of ₹50,000 or more in a single day.
This change will make banking easier for everyday users, reducing the paperwork for routine transactions.
PAN Rules for Vehicles, Hotels, and Property
The draft rules also update PAN requirements for other purchases:
Vehicles: PAN will now be mandatory for vehicles worth over ₹5 lakh, including two-wheelers.
Earlier, two-wheelers didn’t require a PAN.
Hotels and Restaurants: No PAN will be needed for payments up to ₹1 lakh at hotels, restaurants, or banquet halls.
Previously, the limit was ₹50,000.
Property Purchases: PAN will be required for property purchases above ₹20 lakh, doubling the current limit of ₹10 lakh.
Insurance Account Updates
The draft also introduces changes for insurance accounts.
Opening an account with an insurance company will now require a PAN card, whereas earlier it was needed only for payments exceeding ₹50,000 in a financial year.
These updates aim to make tax compliance simpler and reduce unnecessary paperwork for everyday transactions while keeping larger transactions under proper monitoring.
