PAN Rule Change: Rs. 20 Lakh Threshold for Property Deals from April 1

The Central Board of Direct Taxes (CBDT) has notified the Income Tax Rules, 2026, introducing key changes effective April 1, 2026, including a higher threshold for quoting Permanent Account Number (PAN) in property transactions. The limit has been increased from ₹10 lakh to ₹20 lakh, offering relief to small-value buyers and sellers.

For buyers, the revision reduces compliance requirements and paperwork during property registration or builder transactions. Sellers, particularly senior citizens or individuals disposing of low-value or ancestral assets, may benefit from reduced procedural hurdles, especially in one-time deals. 

However, tax experts caution that the relaxation applies only to PAN quoting requirements and does not exempt parties from tax liabilities. Crucially, under stamp valuation rules, if the circle rate determined by the Stamp Valuation Authority exceeds ₹20 lakh, quoting PAN remains mandatory, even if the actual transaction value is lower. Also Read: Draft Income Tax Rules 2026: Key Changes in HRA and Property PAN Norms

Further, PAN is still required for financial transactions involving cash deposits or withdrawals aggregating to ₹10 lakh or more in a financial year. In cases where PAN is unavailable, individuals must furnish Form 60 as a declaration.

Experts also advise buyers to conduct due diligence, including verifying the seller’s title, documentation, and transaction history, to avoid legal disputes or unforeseen tax complications.