New PAN Quoting Limits from 1 April 2026 – Compliance Guide

New permanent account number Quoting Rules (From 1 April 2026)

These new permanent account number quoting rules specify when a permanent account number must be quoted for certain financial transactions. above compares old limits vs revised limits.

Cash Withdrawals (Bank/Post Office)

Old Rule	New Rule
INR 20 lakh (FY basis)	INR 10 lakh (FY basis)

Meaning: If total cash withdrawal exceeds INR 10 lakh in a financial year, quoting permanent account number becomes mandatory. This permanent account number  limit impacts that Lower threshold → more monitoring of cash withdrawals

Cash Deposits (Bank/Post Office)

Old Rule	New Rule
INR 50,000 (single day)	INR 10 lakh (FY basis)

Meaning: Aggregate deposits beyond INR 10 lakh/year require a permanent account number  Banks already report high-value transactions under SFT. →A permanent account number linkage ensures traceability

Immovable Property Transactions

Old Rule	New Rule
INR 10 lakh	INR 20 lakh

Meaning: permanent account number required if property value exceeds INR 20 lakh that Relaxation compared to old rule

Motor Vehicle Purchase/Sale

Old Rule	New Rule
All vehicles (except 2-wheelers)	INR 5 lakh threshold

Meaning permanent account number required only if transaction exceeds INR 5 lakh, Includes motorcycles; excludes tractors and Brings clarity + threshold-based approach

Cash Payment at Hotels/Restaurants

Old Rule	New Rule
INR 50,000 (single transaction)	INR 1 lakh

Meaning: permanent account number required only if payment exceeds INR 1 lakh. It Ease for individuals (limit increased)

PAN Policy objective

These changes reflect a broader policy objective:

• Increased Reporting Visibility More transactions will be tracked through PAN-based reporting
• Stronger Anti-Tax Evasion Framework: Limits on high-value transactions aim to curb unaccounted money
• Higher Compliance Accountability Applies to both individual taxpayers and businesses

Overall Impact Analysis

• Tightened Controls of cash withdrawal limits reduced (INR 20L → INR 10L) and Better tracking of high cash usage
• Relaxation property threshold increased, hotel payment limit increased, and vehicle transactions were made threshold-based.
• These are permanent account number quoting requirements, NOT prohibition limits. Non-compliance can lead to Transaction reporting issues and Possible scrutiny / notices
• High-risk areas are cash-heavy businesses, real estate transactions, and high-value banking transactions.

In Symmary 

From FY 2026–27, a permanent account number is required at lower limits for cash transactions and at revised higher limits for some sectors. The objective is better tracking and reducing black money.”

• For motor vehicles, a permanent account number is needed if the transaction value is more than INR 5 lakh.
• permanent account number is required for transactions involving immovable property that exceed INR 20 lakh.
• Hotel/Event Payments: If the amount exceeds INR 1 lakh, a permanent account number quotation is required.
• Cash Deposits & Withdrawals: If the total amount of cash transactions in a fiscal year exceeds INR 10 lakh, a permanent account number is necessary.
• Insurance Transactions: A permanent account number is required for new account-based relationships.
• The updated permanent account number regulations greatly improve data visibility for tax authorities and are not only procedural. To guarantee smooth compliance, early system and process alignment will be essential.
• we should advise to encouraging clients to use banking channels, ensuring permanent account number and Aadhaar connectivity, and reconciling with AIS/SFT data are all things
• Sharing this blog as a quick compliance reference for businesses, professionals, and salaried individuals.

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