PAN rules change from April 1: Higher PAN quoting limits; new Form 93; additional documents required for application and more

The rollout of the new income tax framework under the Income-ax Act, 2025, has brought significant changes to how one can apply for a Permanent Account Number (PAN) card. The new PAN Card rules also expand mandatory PAN quoting requirements for high-value transactions such as large cash deposits and property deals, making PAN compliance more important than ever for taxpayers.

Kinjal Bhuta, treasurer, BCAS, says, “PAN application forms for Indian citizens and companies (Form 49A) are now Form 93. As reported separately, Aadhaar-only PAN applications have been discontinued, with category-specific forms now introduced for different taxpayer types. PAN quoting is also now mandatory for high-value transactions such as cash deposits of Rs 10 lakh or more and property transactions of Rs 20 lakh or more.”

Also read: New income tax rules from April 1, 2026: From HRA relief to new ITR deadlines, key changes explained

New applications to apply for PAN card

PAN application forms have been reorganised under the Income-ax Act, 2025. Different forms will now apply to different categories of applicants.

Old Form	New Form	Applicable To
Form 49A	Form 93	Indian individuals (Citizens of India)
Form 49A	Form 94	Indian companies and entities formed in India
Form 49AA	Form 95	Individuals who are not Indian citizens
Form 49AA	Form 96	Companies or entities formed outside India

Applicants could apply for a PAN Card using only Aadhaar until March 31, 2026. However, from April 1, 2026, additional documents will be required to apply for PAN.

Documents required to apply for PAN

From April 1, 2026, you may need to submit a birth certificate, voter ID, passport, driving licence, matriculation certificate and other government documents to apply for a PAN card.

New limits for quoting PAN

Transaction Type	Till March 31, 2026	1-Apr-26
Cash deposits/withdrawals in bank accounts	PAN required for cash deposits above ₹50,000 in a day	PAN required for cash deposits/withdrawals aggregating to ₹10 lakh or more in a financial year
Purchase of motor vehicles (including two-wheelers)	PAN mandatory for motor vehicles (price-based rules limited); not required for many two-wheelers	PAN required if vehicle price exceeds ₹5 lakh
Hotel or restaurant bills / event payments	PAN required if payment exceeds ₹50,000	PAN required if payment exceeds ₹1 lakh
Purchase/sale/gift of immovable property	PAN required if transaction exceeds ₹10 lakh	PAN required if transaction exceeds ₹20 lakh
Life insurance premium payments	PAN required if premium exceeds ₹50,000 in a year	PAN mandatory for starting any account-based relationship with an insurance company

What is PAN?
A Permanent Account Number (PAN) is a 10-digit alpha numeric number, issued in the form of a laminated card, by the Income Tax Department, to any ‘person’ who applies for it or to whom, the department allots the number without an application. PAN enables the I-T Department to link all transactions of the ‘person’ with the department.