New Delhi: In a major relief for property buyers and sellers, the Income Tax Department has proposed a new rule that may remove the need to provide a PAN card for property transactions valued below Rs 20 lakh.
The proposal is part of the Draft Income Tax Rules, 2026, introduced under the new income tax framework. If the proposal receives final approval, the new rule will come into effect from April 1, 2026.
Limit likely to be doubled
At present, mentioning a PAN card is compulsory while buying or selling any property such as a house, flat or plot if the transaction value exceeds Rs 10 lakh.
Under the proposed rules, this limit may be increased to Rs 20 lakh. This means property deals below Rs 20 lakh will no longer require PAN details, reducing documentation requirements for buyers and sellers.
However, PAN card information will still remain mandatory for property transactions worth Rs 20 lakh or more, as per existing monitoring norms.
Why the government is proposing the change?
Property prices have increased significantly across India over the past few years. The government believes that the earlier Rs 10 lakh limit has become outdated considering current market conditions.
By increasing the threshold, authorities aim to make property transactions easier, especially in smaller cities and semi-urban areas where property values are relatively lower. The move is expected to simplify procedures and reduce compliance burden for genuine buyers.
Role of PAN in property transactions
Tax experts explain that PAN details help the Income Tax Department track whether a person’s property purchase matches their declared income. This system helps authorities monitor high-value deals and reduce chances of tax evasion.
Even after the proposed relaxation, large property transactions will continue to remain under tax scrutiny to ensure transparency.
If implemented, the new rule could make small-value property purchases faster, simpler and more convenient for lakhs of homebuyers across the country.
