No PAN Required for Property Purchases Up to ₹20 Lakhs; New Rule Effective Today

PAN Card: Under the new Income Tax rules effective from April 1, 2026, the mandatory requirement of a PAN card for buying or selling immovable property valued at less than ₹20 lakhs has been abolished. Previously, this threshold was ₹10 lakhs.

PAN Card: Until now, furnishing a PAN card was mandatory for any property transaction exceeding ₹10 lakhs; however, under the new tax reforms, this limit has now been raised to ₹20 lakhs.

What is the New Change?

According to the new rules effective from today, if you buy or sell a house, flat, shop, or plot valued at less than ₹20 lakhs, providing a PAN number for that transaction will no longer be mandatory.

Old Rule: Previously, this limit was merely ₹10 lakhs. Furnishing a PAN was mandatory even for a property valued at ₹10,00,001.

New Rule (Effective April 1, 2026): Now, transactions up to ₹20 lakhs are exempted from the mandatory PAN requirement.

Benefits for Small Buyers and Rural Areas

This move is expected to prove particularly helpful for people residing in small towns and rural areas.

Reduced Paperwork: Buyers of small plots or homes will now be spared the hassles typically encountered during property registration in the absence of a PAN card.

Ease of Doing Business: The process for transferring low-value properties will now become faster and simpler than before.

When Will PAN Be Required?

Please note that this exemption applies only to low-value properties.

If the value of the property is ₹20 lakhs or more, a PAN card must be furnished.

If you wish to claim tax exemptions on ‘Capital Gains’ realized from the sale of a property.

For making large payments through banking channels, a PAN may still be required under the bank’s own KYC (Know Your Customer) regulations.