Changes in Cash Deposits, Car Sales, and Hotel Bills from April 1

Key Takeaways:

• Cash Limit: PAN becomes mandatory for aggregate annual cash deposits/withdrawals exceeding ₹10 lakh.

• Vehicle Sales: Threshold for mandatory PAN set at ₹5 lakh; includes high-end two-wheelers.

• Hospitality Relief: PAN quoting limit for hotel/restaurant bills increased to ₹1 lakh.

• Public Feedback: The draft is open for public suggestions until February 22, 2026.

GG News Bureau

New Delhi 16th February :In a significant move to modernize India’s fiscal landscape, the Central Government has proposed a series of sweeping changes to PAN card regulations, set to take effect from April 1, 2026. These updates, drafted under the new Income Tax Rules 2026, aim to align daily financial activities with the landmark Income Tax Act 2025. By shifting focus from individual transaction caps to annual aggregate limits, the government seeks to reduce the compliance burden on the common man while tightening the net around high-value cash movements.

The Shift from Daily to Annual Cash Monitoring

Perhaps the most notable change concerns banking. Currently, depositing more than ₹50,000 in a single day requires a PAN card. Under the proposed rules, this daily “friction point” is replaced by an annual threshold. PAN details will now be mandatory only if total cash deposits or withdrawals across all bank accounts exceed ₹10 lakh in a single financial year. This provides significant relief for small businesses and individuals handling frequent but moderate cash amounts.

Buying a Car? The ₹5 Lakh Threshold

The automobile sector is also seeing a major policy shift. Existing rules mandate PAN for almost all motor vehicle purchases (excluding two-wheelers). The new draft proposes that PAN will only be required if the vehicle’s value exceeds ₹5 lakh. Interestingly, this now brings high-end motorcycles into the fold while exempting budget-friendly cars and used vehicles, making the process smoother for middle-class buyers.

Hospitality and Property: Easing the Paperwork

For those enjoying luxury dining or planning events, the threshold for quoting PAN at hotels and restaurants is proposed to double—from the current ₹50,000 to ₹1 lakh. Similarly, in the real estate sector, the mandatory PAN requirement for property transactions is set to jump from ₹10 lakh to ₹20 lakh, reflecting the rising market values across Indian cities.