New PAN Rules From April 1, 2026: All You Need to Know
New rules for Permanent Account Number (PAN) will take effect from April 1, 2026, changing application requirements and transaction limits. Aadhaar alone will no longer suffice, while thresholds for financial transactions have been revised to ease compliance for individuals and businesses.
Mumbai, March 31: Several significant changes to the Permanent Account Number (PAN) system will come into effect from April 1, 2026, impacting both how individuals apply for PAN and how it is used in financial transactions. The updated rules aim to strengthen compliance and reduce discrepancies, while also easing certain requirements for everyday financial activities.
One of the biggest changes is in the application process. Aadhaar alone will no longer be sufficient to apply for a PAN card. Applicants must now submit additional documents to verify identity and date of birth. Accepted documents include a birth certificate, voter ID, Class 10 certificate, passport, driving licence or an affidavit issued by a magistrate. Authorities have also made it mandatory for the applicant’s name on PAN to exactly match Aadhaar records, reducing errors and duplication. New Rules From 1 April 2026: List of Rule Changes That Will Impact Your Wallet.
The government has also introduced revised application forms based on applicant categories. Form 93 will be used for individuals, Form 94 for companies, Form 95 for foreign individuals and Form 96 for foreign entities. This change is aimed at streamlining the process and improving classification accuracy.
Apart from application rules, the usage of PAN in financial transactions has also been updated. The new norms revise thresholds, making compliance easier for routine transactions. For deposits and withdrawals, PAN will now be required only if total transactions exceed INR 10 lakh in a financial year, replacing the earlier daily threshold of INR 50,000. Income Tax Rules 2026: Key Changes for Salaried Taxpayers From April 1 and How Tax Filing Will Change.
In vehicle purchases, PAN will be mandatory only for transactions above INR 5 lakh. Similarly, the threshold for property deals has been increased from INR 10 lakh to INR 20 lakh, offering relief in mid-range transactions. For high-value expenses at hotels, restaurants or events, PAN will now be required only for payments exceeding INR 1 lakh, up from INR 50,000.
However, insurance rules have been tightened. PAN will now be mandatory at the start of every insurance policy, regardless of the premium amount, ensuring better tracking and compliance.
Experts advise applicants to verify their Aadhaar details in advance and keep necessary documents ready to avoid delays. With stricter verification in applications and relaxed thresholds for transactions, the new PAN rules aim to balance compliance with convenience for individuals and businesses.
(The above story first appeared on LatestLY on Mar 31, 2026 09:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).