The government is preparing to increase oversight of large transactions. Under new draft rules, providing a PAN card will now be mandatory for many high-value transactions. The objective is clear: tax transparency and control over cash transactions.

The biggest question is – why is the government being strict?

Curbing tax evasion, tracking large cash transactions, transparency in real estate and luxury spending, detecting the gap between income and expenditure.

PAN mandatory for cash deposits/withdrawals of Rs 10 lakh

If you deposit or withdraw cash exceeding ₹10 lakh per year, providing a PAN will be mandatory. This will make it difficult to evade the limit by making frequent small transactions.

New limit of up to Rs 20 lakh in property deals

The most significant change is for the real estate sector. It is proposed to make PAN mandatory for property deals up to ₹20 lakh. This will now cover most deals, even in smaller cities.

Buying a car above Rs 5 lakh? PAN required

If you buy a car over ₹5 lakh, you'll need to provide your PAN and the transaction will be tracked. Now, not just luxury cars, but even mid-segment vehicles are under surveillance.

Hotel and event expenses also on the radar

Hotel bills exceeding ₹1 lakh, event expenses, weddings, or corporate events may require PAN. The government will now also track lifestyle expenses.

PAN is also required for opening an insurance account.

New rules make PAN mandatory for opening an insurance account, simplifying high-value policy tracking. Efforts are underway to curb money laundering.

Increased cross-checking of ITR and bank data

Now, data on large transactions can be shared between banks, the Income Tax Department, and the Registration Department. Notices are possible if there is a significant discrepancy between expenses and declared income.

“Big spending = complete transparency”

The government's message is clear: "Big spending = complete transparency." PAN is now becoming the hallmark of every major financial move, not just tax returns. If you make high-value transactions, it's important to understand the rules, or you could face a notice later.

PC:Zeenews