Transactions Where Quoting PAN is Mandatory in 2026

Permanent Account Number, or PAN, must be quoted for specified financial and commercial transactions under the Income-tax Act, 2025 and the Income-tax Rules, 2026. From April 1, 2026, the principal statutory provision is section 262 and the detailed transaction list is prescribed in Rule 159.

Important: Several monetary limits that applied under the earlier Income-tax Rules, 1962 are no longer current. This page has therefore been revised to reflect Rule 159 of the Income-tax Rules, 2026.
Contents

Legal Basis for Mandatory Quoting of PAN

Section 262 of the Income-tax Act, 2025

Section 262 is the principal statutory provision dealing with Permanent Account Number. Among other matters, it authorises the requirement to obtain, quote or authenticate PAN in prescribed circumstances and transactions.

Rule 159 of the Income-tax Rules, 2026

Rule 159 prescribes the transactions for the purposes of section 262(1)(f), section 262(10)(c) and section 262(10)(e). It specifies the nature of each transaction, the monetary threshold, and the person who must receive or issue the relevant document.

Official Rule 159 Income-tax Act, 2025

PAN Mandatory Transactions and Monetary Limits under Rule 159

S. No. Nature of transaction PAN requirement / monetary limit
1 Application to a banking company, co-operative bank, company or institution for issue of a credit card. All such transactions
2 Opening an account with a depository, participant, custodian of securities or other specified SEBI-registered person. All such transactions
3 Payment to the Reserve Bank of India for acquiring bonds issued by it. Amount exceeding Rs. 50,000.
4 Payment to a Mutual Fund for purchase of units. Amount exceeding Rs. 50,000.
5 Contract for sale or purchase of securities, other than shares, as defined under the Securities Contracts (Regulation) Act, 1956. Amount exceeding Rs. 1,00,000 per transaction.
6 Cash deposits with a banking company, co-operative bank or Post Office. Cash deposits aggregating to Rs. 10,00,000 or more in a financial year in one or more accounts of a person.
7 Cash withdrawals from a banking company, co-operative bank or Post Office. Cash withdrawals aggregating to Rs. 10,00,000 or more in a financial year in one or more accounts of a person.
8 Sale or purchase of a motor vehicle or motor cycle requiring registration under the Motor Vehicles Act, 1988, except a tractor. Amount exceeding Rs. 5,00,000.
9 Sale or purchase of shares of a company not listed on a recognised stock exchange. Amount exceeding Rs. 1,00,000 per transaction.
10 Payment to a company or institution for acquiring debentures or bonds issued by it. Amount exceeding Rs. 50,000.
11 Purchase, sale, gift or joint development agreement involving immovable property. Amount exceeding Rs. 20,00,000, or stamp valuation exceeding Rs. 20,00,000.
12 Opening a bank account other than a time deposit account referred to at S. No. 13 and other than a Basic Savings Bank Deposit Account. All such transactions
13 Time deposit with a bank, co-operative bank, Post Office, Nidhi or specified NBFC. Amount exceeding Rs. 50,000, or aggregating to more than Rs. 5,00,000 during a financial year.
14 Commencement of an account-based relationship with an insurer. Where insurance premium exceeds Rs. 50,000 during a financial year.
15 Cash payment to a hotel, restaurant, convention centre, banquet hall or event manager against one bill or bills at one time. Cash payment exceeding Rs. 1,00,000.
16 Sale or purchase of goods or services of any nature other than transactions specified at S. Nos. 1 to 15. Amount exceeding Rs. 2,00,000 per transaction.
Immovable property: Rule 159 requires PAN where the purchase, sale, gift or joint development agreement exceeds Rs. 20 lakh, or where the stamp valuation exceeds Rs. 20 lakh. A separate rule applies to a person without PAN where the amount or stamp value exceeds Rs. 45 lakh, as explained below.

What if a Person Does Not Have PAN?

Rule 159 makes an important distinction between different categories of transactions.

For transactions at S. Nos. 11 to 16, a person other than a company or firm who does not have PAN may furnish a declaration in Form No. 97, subject to the conditions prescribed in the rule. Form No. 97 replaces the earlier Form No. 60 mechanism under the pre-2026 rules.

However, for a person without PAN entering into transactions at S. Nos. 1 to 10, Rule 159 generally requires an application for PAN. The same applies to an immovable-property transaction at S. No. 11 where the amount exceeds Rs. 45 lakh or the stamp valuation exceeds Rs. 45 lakh, subject to the exceptions in the rule.

Official Income-tax Rules, 2026 and Form No. 97

For related information on this website, see declaration where a person does not hold PAN. References to old Form 60 or Form 61 on historical pages should be read subject to the Income-tax Rules, 2026.

PAN Requirement for a Minor

Where a minor has no income chargeable to tax and enters into a transaction specified in Rule 159, the minor is required to quote the PAN of the father, mother or guardian, as the case may be, in the relevant transaction document.

Important Exceptions and Compliance Requirements

Rule 159 contains specific exemptions, including for the Central Government, State Governments and consular offices. It also contains limited relief for specified non-residents and foreign companies in certain transactions, including transactions involving an IFSC banking unit, where the prescribed conditions are met.

The person receiving or issuing the transaction document is also required to ensure that the PAN has been correctly mentioned and verified, or that Form No. 97 has been properly furnished where permitted. PAN or Form No. 97 details must also be linked with the records and information furnished to the income-tax or other competent authorities.

How the 2026 Rules Differ from Older PAN Lists

Older PAN articles often mention outdated limits such as Rs. 5 lakh for immovable property, Rs. 25,000 for hotel bills or foreign travel, or older references to telephone connections and some legacy securities transactions. Those figures were based on earlier versions of the Income-tax Rules and should not be used for transactions governed by Rule 159 of the Income-tax Rules, 2026.

The current legal test is the transaction and threshold specified in Rule 159. Persons entering into a transaction should therefore verify the rule applicable on the date of the transaction.

Frequently Asked Questions

Is PAN mandatory for purchase or sale of property?

Yes, where the transaction falls within Rule 159. PAN must be quoted where the amount involved in the purchase, sale, gift or joint development agreement exceeds Rs. 20 lakh or where the stamp valuation exceeds Rs. 20 lakh.

Is PAN mandatory for a bank time deposit?

PAN is required where the time deposit exceeds Rs. 50,000 or where such deposits aggregate to more than Rs. 5 lakh during a financial year, subject to the detailed provisions of Rule 159.

Is PAN mandatory for cash deposits or withdrawals?

Rule 159 covers cash deposits and cash withdrawals aggregating to Rs. 10 lakh or more in a financial year in one or more accounts of a person with the specified banking or Post Office institutions.

Is PAN mandatory for purchase of goods or services?

For goods or services not otherwise covered by S. Nos. 1 to 15 of Rule 159, PAN is required where the transaction amount exceeds Rs. 2 lakh.

What form replaces Form 60 from April 1, 2026?

Form No. 97 is the current declaration prescribed for eligible persons without PAN in the transactions and circumstances specified by Rule 159 and Rule 160 of the Income-tax Rules, 2026.

Where can I read about who must obtain PAN?

See who is liable to obtain an Income Tax Permanent Account Number and how to apply for PAN and the documents required.

Last updated: September 6, 2026. Monetary limits and procedural rules may be amended. Always verify the current Act, Rules and official Income Tax Department guidance before completing a transaction.