ET OnlinePAN rule changes from April 1: What you need to know
The rollout of the new income tax framework under the Income-ax Act, 2025, has brought significant changes to how one can apply for a Permanent Account Number (PAN) card. The new PAN Card rules also expand mandatory PAN quoting requirements for high-value transactions such as large cash deposits and property deals, making PAN compliance more important than ever for taxpayers.
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Kinjal Bhuta, treasurer, BCAS, says, “PAN application forms for Indian citizens and companies (Form 49A) are now Form 93. As reported separately, Aadhaar-only PAN applications have been discontinued, with category-specific forms now introduced for different taxpayer types. PAN quoting is also now mandatory for high-value transactions such as cash deposits of Rs 10 lakh or more and property transactions of Rs 20 lakh or more.”
Also read: New income tax rules from April 1, 2026: From HRA relief to new ITR deadlines, key changes explained
New applications to apply for PAN card
PAN application forms have been reorganised under the Income-ax Act, 2025. Different forms will now apply to different categories of applicants.
| Old Form | New Form | Applicable To |
| Form 49A | Form 93 | Indian individuals (Citizens of India) |
| Form 49A | Form 94 | Indian companies and entities formed in India |
| Form 49AA | Form 95 | Individuals who are not Indian citizens |
| Form 49AA | Form 96 | Companies or entities formed outside India |
Applicants could apply for a PAN Card using only Aadhaar until March 31, 2026. However, from April 1, 2026, additional documents will be required to apply for PAN.
Documents required to apply for PAN
From April 1, 2026, you may need to submit a birth certificate, voter ID, passport, driving licence, matriculation certificate and other government documents to apply for a PAN card.
New limits for quoting PAN
| Transaction Type | Till March 31, 2026 | 1-Apr-26 |
| Cash deposits/withdrawals in bank accounts | PAN required for cash deposits above ₹50,000 in a day | PAN required for cash deposits/withdrawals aggregating to ₹10 lakh or more in a financial year |
| Purchase of motor vehicles (including two-wheelers) | PAN mandatory for motor vehicles (price-based rules limited); not required for many two-wheelers | PAN required if vehicle price exceeds ₹5 lakh |
| Hotel or restaurant bills / event payments | PAN required if payment exceeds ₹50,000 | PAN required if payment exceeds ₹1 lakh |
| Purchase/sale/gift of immovable property | PAN required if transaction exceeds ₹10 lakh | PAN required if transaction exceeds ₹20 lakh |
| Life insurance premium payments | PAN required if premium exceeds ₹50,000 in a year | PAN mandatory for starting any account-based relationship with an insurance company |
What is PAN?
A Permanent Account Number (PAN) is a 10-digit alpha numeric number, issued in the form of a laminated card, by the Income Tax Department, to any ‘person’ who applies for it or to whom, the department allots the number without an application. PAN enables the I-T Department to link all transactions of the ‘person’ with the department.
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