New PAN-quoting limits under Rule 159 of the Income-tax Rules 2026: Rs 10 lakh cash in a year, Rs 20 lakh property, Rs 5 lakh car

From 1 April 2026, the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026) decide when you must quote your Permanent Account Number (PAN). Rule 159 sets out a 16-row table of transactions, made for the purposes of section 262(1)(f) and section 262(10) of the Income-tax Act, 2025. Three limits will matter to most households: cash deposits or withdrawals of Rs 10 lakh or more in a financial year, immovable property above Rs 20 lakh, and a car or motorcycle above Rs 5 lakh.

Every threshold below is taken from the text of rule 159 as published by the Income Tax Department.

What the Section Says

Rule 159(1) says that every person "shall quote his Permanent Account Number in all documents" pertaining to the transactions in column 2 of the table, where the value crosses the limit in column 3. Column 4 names the receiver (a bank manager, postmaster, sub-registrar or vehicle seller), who must verify the PAN under rule 159(5).

The 16 transactions at a glance

Note the wording. Rows 6 and 7 use "Rs 10 lakh or more", so exactly Rs 10,00,000 is caught, while rows 8, 11 and 16 use "exceeding", so a car priced at exactly Rs 5,00,000 is not. Rows 6, 7 and 13 are annual aggregates; rows 5, 9 and 16 are measured per transaction.

Minors, people without a PAN, and exemptions

Rule 159(2)(a) says a minor with no income chargeable to tax quotes the PAN of the father, mother or guardian. Rule 159(2)(b) lets an individual or other person that is not a company or a firm, and that has no PAN, file a declaration in Form No. 97 instead, but only for rows 11 to 16.

Rule 159(3) closes that door for rows 1 to 10. A person without a PAN who wants a credit card, a demat account, or to deposit or withdraw Rs 10 lakh or more in cash in a year must apply for a PAN. The same applies to a property deal under row 11 where the price or the stamp value exceeds Rs 45 lakh. Rule 159(6) exempts the Central Government, State Governments and consular offices altogether, and exempts non-residents for rows 1, 3, 15 and 16 only.

What the receiver must do with Form No. 97

Rule 160 applies to the receivers listed against rows 11 to 14, and to receivers under rows 15 and 16 whose accounts must be audited under section 58. They must file a statement in Form No. 98 with the income-tax intelligence directorate and keep each Form No. 97 for six years from the end of the financial year of the transaction.

Separately, rule 161 (for section 262(9)(a)) requires cash deposits aggregating Rs 20 lakh or more in a financial year to carry a PAN that has been quoted and authenticated. A Rs 10 lakh limit under rule 159 and a Rs 20 lakh limit under rule 161 therefore sit side by side, and they should not be confused.

Worked Example

Take Meera, a salaried employee in Pune earning Rs 24 lakh a year, and her 15-year-old son Arjun, who has no taxable income. Here is how rule 159 applies to six things the family does in FY 2026-27 (1 April 2026 to 31 March 2027).

Cash deposits. The first deposit of Rs 6 lakh does not reach the limit on its own. The second deposit of Rs 4 lakh takes the financial-year total to exactly Rs 10 lakh across two banks, and row 6 covers deposits "in one or more account of a person". Because the test is "Rs 10 lakh or more", the September deposit is caught.

The car. At Rs 7.4 lakh the hatchback exceeds the Rs 5 lakh limit in row 8. Column 4 makes the seller responsible, so the dealer records Meera's PAN.

The fixed deposits. A single FD of Rs 45,000 is below the Rs 50,000 per-deposit limit in row 13. Twelve such deposits in the year, totalling Rs 5.4 lakh, would cross the Rs 5 lakh annual limit. The interest itself is taxable at her slab rate and may attract TDS; you can estimate the deduction with the TDS calculator.

The son's mutual fund. Arjun is a minor with no chargeable income, so rule 159(2)(a) applies. The Rs 60,000 purchase exceeds the Rs 50,000 limit in row 4, and the fund house will record Meera's PAN as his parent.

The flat. Row 11 is triggered if either the price or the stamp duty value exceeds Rs 20 lakh; here both do. A seller without a PAN could give Form No. 97 at Rs 41 lakh, but at a stamp value above Rs 45 lakh rule 159(3)(b) would require a PAN application. On a later sale, the capital gains calculator estimates the tax.

None of these six transactions creates tax by itself; Meera's liability on her Rs 24 lakh salary is still worked out by the income tax calculator. Rule 159 simply ties each one to her PAN for matching against her ITR.

Common Mistakes

1. Counting each bank separately. Rows 6 and 7 aggregate cash across "one or more account" in a financial year. A Rs 5 lakh cash deposit at each of two banks totals Rs 10 lakh and meets the limit, even though neither bank individually saw Rs 10 lakh.

2. Ignoring withdrawals. Row 7 mirrors row 6 for cash withdrawals of Rs 10 lakh or more in a year.

3. Using the agreement value alone for property. Row 11 also applies where the stamp valuation authority values the property above Rs 20 lakh. A flat registered at Rs 18 lakh but valued by the authority at Rs 22 lakh still requires PAN.

4. Assuming Form No. 97 works everywhere. Rule 159(2)(b) limits the Form No. 97 declaration to rows 11 to 16. For a credit card, a demat account, a Rs 10 lakh cash deposit or a property above Rs 45 lakh, rule 159(3) requires an application for PAN instead.

5. Forgetting that companies and firms cannot use Form No. 97. Rule 159(2)(b) is restricted to a person "not being a company or a firm". A partnership firm buying a Rs 30 lakh office must quote its own PAN.

6. Mixing up the Rs 10 lakh and Rs 20 lakh cash limits. Rule 159 row 6 sets Rs 10 lakh for quoting PAN; rule 161 sets Rs 20 lakh for quoting an authenticated PAN under section 262(9)(a).

7. Not reconciling with the AIS. Transactions linked to your PAN can surface in your Annual Information Statement. Check it against your bank statements before filing your FY 2026-27 return.

FAQ

When did the Rule 159 PAN thresholds come into force?

The Income-tax Rules, 2026 were notified as G.S.R. 198(E) on 20 March 2026 and took effect on 1 April 2026. They apply to transactions from FY 2026-27 onwards, under section 262 of the Income-tax Act, 2025.

Is the Rs 10 lakh cash limit per account or per person?

Per person. Rows 6 and 7 of the rule 159 table count cash deposits, or cash withdrawals, "aggregating to ten lakh rupees or more in a financial year, in one or more account of a person" with a bank, co-operative bank or post office.

Can I sign Form No. 97 instead of giving PAN for a property purchase?

Only if you are not a company or firm and the price and stamp value do not exceed Rs 45 lakh. Rule 159(3)(b) requires a PAN application where either figure exceeds Rs 45 lakh, even though row 11's general limit is Rs 20 lakh.

What PAN does a minor quote for a mutual fund investment above Rs 50,000?

A minor with no income chargeable to tax quotes the PAN of the father, mother or guardian under rule 159(2)(a). If the minor has taxable income, the minor's own PAN applies.

How long does a bank keep my Form No. 97?

Six years from the end of the financial year in which the transaction took place, under rule 160(1)(b).

Do non-residents have to quote PAN under rule 159?

Rule 159(6)(b) exempts non-residents for rows 1, 3, 15 and 16 only. For other rows, rule 159(4) relieves a non-resident (not being a company), or a foreign company, from applying for PAN for rows 1 to 10 only where the transaction is with an IFSC banking unit and it has no income chargeable to tax in India.

Source: Income-tax Rules, 2026, rules 159, 160 and 161, published by the Income Tax Department on incometax.gov.in. For PAN services and filing, see the e-filing portal.