Government Proposes Raising PAN Reporting Limit To ₹20 Lakh For Property Deals

The Income Tax Department has released the Draft Income Tax Rules, 2026 under the proposed new income tax framework, outlining revisions to Permanent Account Number requirements in immovable property transactions.

At present, PAN must be furnished for the purchase or sale of immovable property such as a house or plot if the transaction value exceeds ₹10 lakh. The draft rules propose increasing this reporting threshold to ₹20 lakh. If notified, transactions below ₹20 lakh would no longer require mandatory PAN disclosure, while deals valued at ₹20 lakh or more would continue to fall under the reporting requirement.

The draft also proposes explicitly covering property transfers through gifts and joint development agreements within the PAN compliance framework, subject to the applicable value threshold.

Rationale Behind The Revision

Tax professionals indicate that the revision reflects the rise in property market valuations over the years. The existing ₹10 lakh limit often captured relatively modest transactions within the reporting net, particularly in cities where real estate prices have increased significantly.

The higher threshold may ease compliance and documentation requirements for smaller-ticket buyers, especially in non-metropolitan markets where property prices remain comparatively lower.

What Remains Unchanged?

Mandatory PAN disclosure will continue for higher-value property transactions. Deals valued at ₹20 lakh and above will still require PAN reporting, enabling tax authorities to track significant real estate transfers.

Linking property transactions to PAN helps the tax administration match asset acquisitions with income disclosures and maintain oversight of the real estate sector.

Also Read: Indian Govt Disburses ₹28,748 Crore Under 14 PLI Schemes till December 2025!

Conclusion

The proposed revision seeks to balance compliance requirements with prevailing market realities. As the rules are currently in draft form, stakeholders can provide feedback before final notification, expected to take effect from April 1 if approved.

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