Draft Income Tax Rules have proposed significantly raising transaction limits for quoting of PAN for cash deposits/withdrawal in banks, purchase of motor vehicles and property, payment of hotel bills and other transactions. ADVERTISEMENTThe draft rules have also expanded the list of Category 1 metropolitan cities to include Bengaluru, Pune, Ahmedabad, and Hyderabad for the purpose of claiming house rent allowance (HRA). The Income Tax Rules are being finalised to give effect to the Income Tax Act, 2025, which will be implemented from April 1. Under the draft rules, PAN will be mandatory for starting an account-based relationship with an insurance company. Sources said the intent behind rationalising the PAN quoting threshold is to capture only “relevant information” and “leveraging tech-enhancements of reporting entities” under the Income Tax Act.

Source: The Telegraph February 10, 2026 02:54 UTC