Udaipur, February 26, 2026 (Udaipur Kiran): In a relief for small property buyers and sellers, the Income Tax Department has released draft Income Tax Rules under the new tax regime, proposing key changes in the mandatory requirement of Permanent Account Number (PAN) for property transactions.
Proposed Change in PAN Limit
At present, PAN is mandatory for buying or selling immovable property, including houses and plots, valued above ₹10 lakh. The new draft rules propose increasing this threshold to ₹20 lakh.
If implemented, property transactions below ₹20 lakh will not require PAN details. However, for transactions of ₹20 lakh or more, furnishing PAN will continue to be compulsory as per existing norms.
Gifts and Joint Development Deals Covered
The draft rules clarify that the PAN requirement will not be limited to direct sale and purchase transactions. Property transfers through gifts and joint development agreements will also fall under the PAN compliance framework. The proposed ₹20 lakh threshold will apply to these transactions as well.
Reason Behind the Proposal
According to tax experts, the earlier ₹10 lakh limit had become outdated in view of current real estate prices. In many cities, even modest properties exceed ₹10 lakh, resulting in additional compliance requirements for small buyers.
Experts believe that increasing the threshold to ₹20 lakh will provide relief to buyers in smaller towns and low-value markets by reducing paperwork and procedural formalities.
What Remains Unchanged
The system for monitoring high-value transactions will remain intact. For property deals of ₹20 lakh and above, PAN submission will remain mandatory. This will enable the Income Tax Department to track major transactions and match them with the declared income of buyers.
Draft Stage and Next Steps
The proposed rules are currently in draft form. The government has invited suggestions and feedback from the public and stakeholders. The final rules will be notified after reviewing the received inputs.
Stricter PAN Application Process for Companies
The draft proposal also tightens the PAN application process for companies. Applicants will now be required to declare that the company does not already possess a PAN. In cases involving branches or project offices, internal verification will be necessary to prevent duplication.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
