From Bank Bills to Hotel Bills You Won’t Have to Show Your PAN Every Time
The Indian government is planning major changes to permanent account number (PAN) requirements under the draft Income‑Tax Rules 2026, tied to the new Income Tax Act, 2025. If finalised, these changes will reduce the number of everyday transactions for which you have to quote your PAN — making small payments and bills easier to handle.📈 Why Are PAN Rules Being Changed?Under the old rules, PAN had to be quoted for many financial transactions — including hotel bills, large cash deposits, purchases and bank deposits — even for amounts that were modest for everyday life.The new draft rules being prepared aim to simplify compliance for ordinary taxpayers and reduce paperwork for routine transactions, while still tracking only large or high‑value transactions for tax purposes.🧾 Higher PAN Thresholds — What’s Changing📍 1. bank Deposits & Withdrawals
Everyday bills like small hotel stays, restaurant meals, event fees, moderate bank deposits, or buying lower‑priced vehicles may no longer require PAN.✔ Simpler banking and billing:
Customers will no longer have to quote PAN repeatedly for routine financial tasks — saving time and paperwork.✔ Less compliance burden:
The proposal also cuts down the number of forms and declarations that taxpayers typically fill because data is increasingly available via bank and wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital payment systems.🧠 But When Will These Changes Come Into Force?These are draft rules under the new Income‑Tax Act, 2025. The final version is expected to be notified after consultation with stakeholders, likely by early march 2026, and will then come into effect from 1 April 2026 — replacing many old requirements under the 1962 rules.⚠️ What Still Requires PANEven with these relaxed norms, PAN will still be mandatory in important situations such as:
- ❌ Old rule: PAN required if cash deposit/withdrawal exceeded ₹50,000 in a day.
- 🔄 Draft rule: PAN is now required only when cash deposits or withdrawals aggregate ₹10 lakh or more in a financial year.
👉 Meaning: You don’t have to give PAN for smaller deposits or withdrawals at banks for day‑to‑day needs.
- ❌ Old threshold: PAN needed for bills above ₹50,000.
- 🔄 New draft threshold: PAN will be mandatory only if the bill exceeds ₹1 lakh (for hotels, restaurants, convention centres, banquet halls, event management).
👉 Benefit: If you’re dining or staying under ₹1 lakh, you may not have to quote your PAN now.
- ❌ Before: PAN was required for all motor vehicle purchases (except two‑wheelers).
- 🔄 Now: PAN will be required only for vehicles (including motorbikes) above ₹5 lakh.
👉 So if your vehicle costs less than ₹5 lakh, you may not need to show PAN.
- ❌ Old rule: PAN was necessary for property deals above ₹10 lakh.
- 🔄 New draft rule: Requirement applies only if the property transaction is above ₹20 lakh.
👉 This raises the limit significantly before PAN is needed.
Everyday bills like small hotel stays, restaurant meals, event fees, moderate bank deposits, or buying lower‑priced vehicles may no longer require PAN.✔ Simpler banking and billing:
Customers will no longer have to quote PAN repeatedly for routine financial tasks — saving time and paperwork.✔ Less compliance burden:
The proposal also cuts down the number of forms and declarations that taxpayers typically fill because data is increasingly available via bank and wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital payment systems.🧠 But When Will These Changes Come Into Force?These are draft rules under the new Income‑Tax Act, 2025. The final version is expected to be notified after consultation with stakeholders, likely by early march 2026, and will then come into effect from 1 April 2026 — replacing many old requirements under the 1962 rules.⚠️ What Still Requires PANEven with these relaxed norms, PAN will still be mandatory in important situations such as:
- Starting an account‑based relationship with an insurance company.
- Large cash deposits or withdrawals totalling over ₹10 lakh in a year.
- Property transactions above ₹20 lakh.
- Vehicle purchases above ₹5 lakh.
- Very large hotel/event bills over ₹1 lakh.
- The government is raising thresholds for when PAN must be quoted.
- Smaller bills and everyday transactions like hotel stays under ₹1 lakh or small bank cash movements may not need PAN.
- These changes are part of the move to a new Income Tax Act, 2025 and are expected to take effect from April 2026.
- The aim is to simplify compliance and reduce unnecessary PAN use for routine expenses.