In a significant move to simplify paperwork for small-ticket real estate buyers, the Income Tax Department has proposed doubling the threshold for mandatory PAN disclosure in property transactions.
According to the Draft Income Tax Rules, 2026, which were released in late February, you will no longer be required to quote your PAN card for property deals valued below ₹20 lakh.
The New “₹20 Lakh” Threshold
This change is a direct response to rising property prices, acknowledging that the previous ₹10 lakh limit (set years ago) now captures even the most modest transactions in smaller towns and rural areas.
| Feature | Current Rule (Pre-April 2026) | New Rule (Draft 2026) |
| Mandatory PAN Threshold | Transactions exceeding ₹10 lakh. | Transactions exceeding ₹20 lakh. |
| Effective Date | Currently in effect. | April 1, 2026 (Proposed). |
| Exempted Transactions | Deals below ₹10 lakh. | Deals below ₹20 lakh. |
Key Details of the Proposal
- Inclusion of Gifts & JDAs: For the first time, the draft rules explicitly include Gift Deeds and Joint Development Agreements (JDAs) under the PAN reporting net if their value exceeds the ₹20 lakh threshold.
- Paperwork Relief: This is expected to be a major boon for first-time buyers in Tier-2 and Tier-3 cities, as well as for family-related property transfers that often fall into this price bracket.
- Traceability for High-Value Deals: PAN remains strictly mandatory for all transactions worth ₹20 lakh or more. This ensures that tax authorities can still track significant wealth transfers and link them to income records to prevent tax evasion.
Other Major PAN Changes in 2026
The “Property Relief” is part of a broader “Ease of Compliance” package introduced under the New Income Tax Act, 2025:
- Cash Deposits/Withdrawals: The threshold for quoting PAN has been raised from ₹50,000 in a single day to an aggregate of ₹10 lakh in a financial year.
- Motor Vehicles: You will only need a PAN for vehicle purchases (including two-wheelers) that exceed ₹5 lakh.
- Hotel/Events: The limit for quoting PAN on cash payments for hotels or event venues has doubled from ₹50,000 to ₹1 lakh.
Current Status
The rules are currently in draft form following a public consultation period that ended on February 22, 2026. The final notification is expected in early March 2026, with implementation slated for the new financial year starting April 1, 2026.
