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

The biggest question: Why is the government taking these strict measures?
Curb tax evasion, tracking large cash transactions, transparency in real estate and luxury spending, and identifying the gap between income and expenditure.

PAN mandatory for cash deposits/withdrawals of ₹10 lakh
If you deposit or withdraw more than ₹10 lakh in cash annually, providing a PAN will be mandatory. This will make it difficult to evade the limit through frequent small transactions.

New limit up to ₹20 lakh for property deals
The most significant change is for the real estate sector. It is proposed that PAN may now be mandatory for property deals up to ₹20 lakh. Most deals, even in smaller cities, will now fall under this scope.

Buying a car above ₹5 lakh? PAN Required
If you purchase a car worth more than ₹5 lakh, you will need to provide your PAN; the transaction will be tracked. Now, not just luxury cars, but mid-segment vehicles are also under surveillance.

Hotel and Event Expenses Also on the Radar
Hotel bills exceeding ₹1 lakh, event expenses, weddings, or corporate events may require providing a PAN. The government will now also track lifestyle expenses.

PAN Required for Opening an Insurance Account
According to the new rules, PAN is mandatory for opening an insurance account, making tracking high-value policies easier. Efforts to curb money laundering.

Cross-checking of ITR and Bank Data Increased
Now, data on large transactions can be shared between banks, the Income Tax Department, and the Registration Department. If there is a significant discrepancy between expenses and declared income, a notice may be issued.

“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 a high-value transaction, it is important to understand the rules, you may receive a notice later.

PC Social Media