Summary of this article
PAN not needed for higher cash deposit transaction limits now
Property PAN threshold increased, but mandatory for bigger deals
Form 97 replaces Form 60 under revised tax rules
The Income-tax Rules, 2026, which came into effect from April 1, 2026, contain a revised framework for quoting the Permanent Account Number (PAN) in certain financial transactions. The rules have changed the limits for several financial activities and have also specified cases where PAN remains compulsory. The framework has also replaced Form 60 with a new Form 97 for individuals who do not possess PAN.
Cash Deposit And Withdrawal Rules
Under the revised rules, PAN is no longer required for cash deposits above Rs 50,000 in a single day, a condition that existed earlier. The annual reporting limit for cash deposits has also been raised from Rs 2.5 lakh to Rs 10 lakh.
However, annual cash withdrawals above Rs 10 lakh continue to fall under PAN reporting requirements. The rules also remove the daily PAN requirement for cash payments made towards bank drafts, pay orders and banker’s cheques.
Property Transactions And PAN Requirements
The Income-tax Rules, 2026, raise the threshold for mandatory PAN quoting in property transactions from Rs 10 lakh to Rs 20 lakh. The reporting threshold for such transactions has also been increased from Rs 30 lakh to Rs 45 lakh.
The rules also widen the scope of PAN compliance by including gift deeds and Joint Development Agreements (JDAs). Individuals involved in property transactions valued above Rs 45 lakh will have to obtain a PAN if they do not already possess one. In such cases, Form 97 cannot be used in place of PAN.
Hotel, Travel And Insurance Transactions
Separate PAN categories for foreign travel expenses and foreign currency purchases have been removed under the revised framework. However, PAN may still be required if such transactions cross the general limit of Rs 2 lakh per transaction for the purchase of goods and services.
PAN quoting limit for hotel and restaurant cash payments has been increased from Rs 50,000 to Rs 1 lakh per transaction. The rules also cover banquet halls, convention centres and event managers.
Insurance companies are required to report premium receipts above Rs 5 lakh for PAN holders and Rs 2.5 lakh for individuals without PAN. Certain stamp paper purchases above the specified limits also come under reporting requirements.
Form 97 Replaces Form 60
The revised framework replaces Form 60 with Form 97 for individuals who do not possess a PAN. These forms are generally used by people who do not have a PAN but still need to carry out financial transactions where quoting a PAN is normally required. Under the revised rules, Form 97 can be submitted in cases except for specific high-value property transactions where PAN is mandatory.
FAQs
What is Form 97 under the new Income-tax Rules 2026?
Form 97 replaces Form 60 and can be used by individuals without PAN for specified financial transactions.
Is PAN mandatory for all property transactions now?
No, PAN is mandatory only for high-value property transactions above prescribed reporting limits.
What is the new cash deposit limit without PAN?
PAN is no longer required for cash deposits above Rs 50,000 in a single day under the revised rules.
