Government’s latest Income Tax draft heralds a new era of simplified compliance from 2026, with relaxed PAN norms for major transactions. Aimed at curbing unnecessary bureaucracy, it redefines rules for banking, autos, hospitality, realty, and insurance.
Headline change: PAN optional for ₹10 lakh total bank deposits/withdrawals yearly across accounts—vastly expanding from the daily ₹50,000 barrier. Salaried individuals and retirees will feel the ease.
Vehicle shoppers face a consolidated ₹5 lakh PAN trigger, roping in two-wheelers for the first time. This uniform policy ends prior disparities.
For hotels, restaurants, and banquet halls, the PAN-free zone extends to ₹1 lakh bills, from ₹50,000 now—perfect for weekend getaways and corporate dos.
Homebuyers can transact up to ₹20 lakh without PAN, double the current cap. Insurance, however, tightens: PAN mandatory for account openings, beyond mere premium thresholds.
Under the Income Tax Act, 2025, rollout starts April 1, 2026, with possible next-month alerts. These updates strike a smart balance, empowering honest taxpayers while fortifying revenue safeguards.