PAN Mandatory for Big Purchases: New Rules Tighten Grip on Gold, Cars and Investments

By Siddhi Jain | Apr 28, 2026, 21:08 IST

India’s tax system has taken a stricter turn with new compliance rules coming into force. Under updated provisions effective from April 1, 2026, the Income Tax Rules, 2026 has made it mandatory to provide a Permanent Account Number (PAN) for several high-value transactions.

This means that without a PAN card, many big-ticket purchases and investments could now be restricted or even blocked.

What Has Changed in the New Rules?

Earlier, individuals without a PAN could complete certain transactions by submitting Form 60. However, the government has now introduced Form 97, which comes with stricter limitations.

As a result, PAN has become essential for a wider range of financial activities, especially those involving large sums of money.

Transactions Where PAN Is Now Mandatory

Here are some key transactions where PAN is now compulsory:

1. Buying a Car Above ₹5 Lakh

If you plan to purchase a car, SUV, or any vehicle costing more than ₹5 lakh, providing PAN is mandatory.

2. Gold Purchases Above ₹2 Lakh

Buying gold jewellery or bullion worth over ₹2 lakh now requires PAN details.

3. Mutual Fund Investments

Investments exceeding ₹50,000 in mutual funds cannot be made without PAN.

4. Bonds and Debentures

For investments above ₹50,000 in bonds, debentures, or RBI bonds, PAN is required.

5. Stock Market Transactions

Purchasing securities worth more than ₹1 lakh in the stock market requires PAN.

6. Unlisted Shares

Investments exceeding ₹1 lakh in unlisted company shares also mandate PAN submission.

Other Financial Activities Affected

Apart from purchases and investments, several financial services now require PAN:

Applying for a credit card
Opening a Demat account
Making large cash deposits or withdrawals

Without PAN, these processes may be delayed or rejected.

Why Has the Government Tightened the Rules?

The objective behind these stricter norms is to:

Improve transparency in financial transactions
Strengthen tax compliance
Track high-value transactions more effectively
Reduce chances of tax evasion

By linking major transactions with PAN, authorities can create a more traceable and accountable financial system.

What This Means for You

If you are planning any major financial activity—such as buying gold, purchasing a car, or investing in markets—having a valid PAN is now essential.

Without it:

Transactions may not be processed
Financial plans could be delayed
Access to investment opportunities may be restricted

Final Takeaway

The new rules under the clearly signal a shift toward a more regulated and transparent financial ecosystem. PAN is no longer just a tax document—it has become a key requirement for major financial decisions.

If you don’t already have a PAN card, applying for one should be a top priority to avoid disruptions in your financial plans.

Disclaimer: This article is for informational purposes only. Please refer to official government notifications or consult a financial expert for detailed guidance.