Credit card rules may change from April 1, 2026. Find out what's new.

Rules Change: The Income Tax Department's new draft rules include some important credit card information. Any annual bill exceeding ₹10 lakh or cash payments exceeding ₹1 lakh will be reported to the tax department. A PAN will be required to obtain a credit card, and the card can also be used for tax payments.

Rules Change: The Income Tax Department has released a draft of the new Income Tax Rules 2026. These are not yet final, but if approved, they may come into effect from April 1, 2026. These new proposed rules include some important credit card information. If you use a credit card, this information is useful.

Information on large bills will be provided.

If you pay a credit card bill of ₹10 lakh or more annually (through any method other than cash), the bank or card company will report this information to the Income Tax Department.
If a bill of ₹1 lakh or more is paid in cash, that will also be reported.

This isn't a completely new rule; such a provision existed before, but it's just been reintroduced in the new draft.

Card statement will be useful for obtaining a PAN

If you're obtaining a new PAN card, you can provide a credit card statement from within three months as proof of address. This will make things easier for people.

You can now pay taxes using a credit card

The draft also states that credit cards can be used in addition to debit cards and net banking for tax payments. This will make payments easier.

What about expenses incurred on company cards?

If your company has issued you a credit card and the company reimburses the expenses incurred on it, it can be considered a benefit of employment. In such a case, the amount may be taxable. However, if the expenses are solely for official purposes and the company maintains a complete record, it won't be taxable.

PAN required for obtaining a credit card

Now, providing a PAN will be required to obtain a credit card from a bank or any other company. You won't be able to get a card without a PAN.

What does this mean for the general public?

The simple fact is that if you pay a large bill, the record will be sent to the government. Therefore, it's important to keep your expenses and documents accurate. These rules are currently in draft form, but if approved, they could come into effect on April 1, 2026. Therefore, it's best to stay informed now.