Draft income tax rules 2026: New PAN Card quoting requirements for property transactions - check details

Draft income tax rules 2026: The Income Tax Department recently released the draft income tax rules in line with the New Income Tax Act. There are several changes in the draft rules pertaining to the requirement of quoting PAN Card.

The draft new income-tax rules have proposed significant change in the scope and threshold for PAN quoting obligations for transactions of purchase or sale of immovable property.

Presently, PAN must be furnished in case of purchase or sale of immovable property if its value exceeds Rs 10 lakh. The new rule has raised the threshold to Rs 20 lakh and broadens the compliance net to gifts and joint development agreements.

New PAN Rule For Property Transactions

According to Richa Sawhney, Partner - Tax at Grant Thornton Bharat the new proposed rule is in recognition of rising property prices.

“This shift in threshold recognizes the increase in property prices and underscores the intent to streamline compliances for small value transactions. Specific reference of gift and joint development agreements also seems to indicate that perhaps need has been felt for increased oversight in these areas,” she tells TOI.

Atul Monga, CEO & Co-Founder, BASIC Home Loan the step should provide some relief for small-ticket transactions, considering deals below this limit wouldn't require PAN quoting at the time of registration.

“The draft Income Tax Rules 2026, proposed by the government signals a push towards traceability and transparency in high-value real estate transactions. Larger transactions, however, will remain within the reporting framework, requiring mandatory PAN quoting,” he tells TOI.

“From a housing accessibility perspective, increasing the threshold could make entry-level property transactions slightly more frictionless, especially in Tier 2 & 3 markets where property values are lower,” he says.

“Traditionally, real estate has been a sector where informal transactions are quite common. By retaining mandatory PAN quoting for high-value deals, the government builds a more robust audit trail and encourages cleaner documentation. For salaried taxpayers and genuine homebuyers, this shouldn't be an issue. On the contrary, clearly linking transactions to PAN improves credibility in property dealings and reduces the likelihood of tax scrutiny in the future, provided the paperwork is in order.

For fintech platforms and lenders, stricter PAN compliance in high-value transactions can improve underwriting accuracy as property dealings can be matched to verified financial records,” Monga says.

“Keep in mind that these are still draft proposals and currently under consultation, so the final contours may evolve before implementation. But the intent is clear, to formalise the ecosystem and avoid unnecessary compliance burden on smaller participants in the market,” he adds.