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Feb 10, 2026
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Employee allowances to PAN requirements for cash deposits and car purchases – New I-T draft rules explained
The Finance Ministry has proposed an increase in the PAN threshold for several items from April 2026. Details outlined in the draft Income Tax rules also suggest raising the value of perquisites provided by employers and making it mandatory for crypto exchanges to share information with the tax department. The increasing of transaction limits will apply across categories — including cash deposits and with withdrawals at the bank, purchase of motor vehicles and property, and even payment of hotel bills.
Permanent Account Number will not be necessary for certain transactions once the new rules go into effect. The draft also slashes the number of Income Tax rules and forms significantly, and introduces features such as smart pre-filled forms.
The proposed Income Tax Rules will be will be notified by the first week of March after incorporating public comments. It will replace the Income Tax Rules of 1962 with effect from April 1.
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