India, Feb. 28 -- From April 1, 2026, the Draft Income Tax Rules, 2026 propose raising the threshold for mandatory PAN quoting in property transactions to Rs.20 lakh, replacing the current limit of Rs.10 lakh. The change, which may also cover gifts and joint development agreements, is seen as a relief for first-time homebuyers in tier-2 and tier-3 cities. However, experts advise continuing to voluntarily quote PAN, as property deals can have tax implications, particularly for sellers liable for capital gains tax.

Rina Soni, a first-time homebuyer in a Tier-III city, has decided to purchase a small apartment for Rs.18 lakh. Under the existing Rule 114B of the Income Tax Rules, 1962, quoting PAN would have been mandatory only if the value ...