From April 1, 2026, taxpayers in India will be able to deposit or withdraw cash up to ₹10 lakh in a financial year without quoting their PAN, according to the Draft Income Tax Rules 2026. This marks a shift from current norms, which require PAN for deposits exceeding ₹50,000 in a single day, and aims to simplify compliance for common taxpayers.
Under the proposed rules, PAN will be mandatory only if aggregate deposits or withdrawals cross ₹10 lakh in a financial year, offering relief from daily cash limits that many found restrictive.
Higher thresholds for property and vehicles
The draft rules also raise the thresholds for other high-value transactions.
For immovable property—including sale, purchase, gift, or joint development agreements—the limit will increase from ₹10 lakh to ₹20 lakh, allowing smaller real estate deals to proceed with less documentation.
In the case of motor vehicles, the PAN requirement will expand from just four-wheelers to all vehicles costing over ₹5 lakh, though tractors remain exempt.
Hotel and restaurant payments
Cash payments at hotels and restaurants will also see a higher threshold.
Currently, bills above ₹50,000 require PAN reporting; under the draft rules, this will increase to ₹1 lakh or more. This change aims to reduce compliance burdens for routine high-value hospitality transactions while maintaining oversight of very large cash flows.
Next steps and advice for taxpayers
These rules are currently in draft form and open for public feedback until February 22, 2026, on the Income Tax portal.
Taxpayers should ensure their PAN, Aadhaar, and bank accounts are linked to avoid issues under the new thresholds.
