Government Unveils 2026 Tax Draft: PAN Requirement Threshold for Property Deals Raised to ₹20 Lakh

by- Grihik
Feb 24, 2026

The proposed Income Tax Rules, 2026 aim to enhance transparency in real estate transactions by expanding PAN disclosure norms. Key changes include increasing the threshold for mandatory PAN quoting from ₹10 lakh to ₹20 lakh for property transactions, while also bringing gifts and joint development agreements under the reporting framework.

New Delhi, February 24, 2026: The government has released the draft Income Tax Rules, 2026, proposing significant changes to PAN quoting requirements for property and other high-value transactions. The draft, aligned with the new Income Tax Act, 2025, is currently open for public feedback and is expected to be notified by early March 2026, with implementation from April 1, 2026 .

Key Changes for Property Transactions

Under the proposed rules, the threshold for mandatory PAN quoting in immovable property transactions has been doubled from ₹10 lakh to ₹20 lakh . This means that any purchase, sale, gift, or joint development agreement of immovable property valued above ₹20 lakh will require parties to furnish their PAN details .

Industry experts note that this revision recognizes the increase in property prices over the years and aims to streamline compliance for smaller transactions . Richa Sawhney, Partner at Grant Thornton Bharat, told The Times of India that "the specific reference to gift and joint development agreements indicates that increased oversight is needed in these areas" .

Separate Reporting Requirement at ₹45 Lakh

In addition to PAN quoting rules, the draft proposes that registrars and sub-registrars must report property transactions worth ₹45 lakh or more to the Income Tax Department through the Statement of Financial Transaction . This threshold has been increased from the current ₹30 lakh limit and now explicitly includes gifts and joint development agreements .

Other PAN-Related Proposals

The draft rules also propose changes to PAN requirements for other transactions :

Cash deposits/withdrawals: PAN required for transactions aggregating ₹10 lakh or more in a financial year (increased from ₹50,000 per day)
Motor vehicle purchases: PAN required for vehicles (including motorcycles) valued above ₹5 lakh
Hotel/restaurant bills: PAN required for payments exceeding ₹1 lakh (increased from ₹50,000)
Insurance: PAN mandatory for starting any account-based relationship with insurance companies

Expert Views

Atul Monga, CEO of BASIC Home Loan, commented that increasing the threshold could make entry-level property transactions smoother, especially in Tier 2 and 3 markets where property values are lower . He added that "by retaining mandatory PAN quoting for high-value deals, the government builds a more robust audit trail and encourages cleaner documentation" .

Next Steps

The Central Board of Direct Taxes has invited stakeholder feedback on the draft rules, with the deadline for comments having passed on February 22, 2026 . The rules are expected to be finalized and notified by the first week of March, becoming effective from April 1, 2026 .