If you're planning to buy a new car, book a hotel for a wedding, or deposit a large sum of money in the bank, this news is especially for you. The central government is preparing to implement the new Income Tax Act from April 1, 2026. This new law proposes revolutionary changes to the rules related to the mandatory PAN card requirement.

According to reports, the CBDT is expected to issue a notification regarding these new rules by the first week of March. These changes are primarily aimed at relieving taxpayers of paperwork burdens and updating the rules to account for current inflation. Let's explore in detail how these changes will affect your wallet and everyday transactions.

Cash deposits and withdrawals at banks

The biggest good news for businesses and ordinary citizens comes with bank transactions. Under the new law, a PAN card will now be mandatory for cash deposits or withdrawals exceeding ₹10 lakh in a financial year. Previously, a PAN card was required for deposits exceeding ₹50,000 in a single day, causing significant inconvenience to small businesses and women with household savings. This government move will promote ease of living in the banking sector and free the middle class from the hassle of repeatedly presenting their PAN cards.

Car and bike purchase

If you're considering buying a budget car or a premium bike, you no longer need to submit a copy of your PAN card at every showroom. Under the new provisions, a PAN card will no longer be mandatory for the purchase of any vehicle priced under ₹5 lakh. Currently, a PAN card is required for every motor vehicle purchase. The government believes this will boost demand in the automobile sector and make it easier for the middle class to purchase vehicles.

Hotel Bills and Event Management

The PAN card requirement limit for large hotel bookings and event management bills has been increased during the wedding season. According to the new rules, a PAN card will only be required if the hotel, restaurant, or event management bill exceeds ₹1 lakh. Previously, this limit was only ₹50,000, which seems prohibitive in today's inflationary environment. Now, you can enjoy family gatherings without fear and avoid the worry of PAN card requirements for small bills.

Property Deals & Real Estate

The government has also shown leniency towards those buying or selling land or issuing gift deeds. The PAN card requirement for real estate transactions has been raised from ₹10 lakh to ₹20 lakh. This will relieve low- and middle-income individuals purchasing small plots or houses from the legal complexities of registration.

Special gift for the working class

The new law also makes special provisions for the salaried class. A car allowance of ₹8,000 to ₹10,000 per month, including driver expenses, is proposed for employees using government or company cars. Furthermore, positive changes have been made to free meal rules to reduce the burden on employees' take-home pay. Meanwhile, the government has tightened reporting rules for crypto and digital currencies and recognized CBDC as an official electronic payment mode.

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