Good news for smaller buyers as property transactions below Rs 20 lakh may no longer require mandatory PAN disclosure. According to the new draft rules put up by the Income Tax Department, property transactions under Rs 20 lakh would no longer require a PAN declaration. If approved, these change may apply from April 1, 2026.
Why Is The Move Being Proposed?
The move is part of the Draft Income Tax Rules, 2026 released under the proposed new income tax framework. The government is proposing to do away with the need to furnish a PAN for property transactions below Rs 20 lakh as property prices have risen dramatically over the years and the current Rs 10 lakh threshold no longer reflects the true value of many homes.
For smaller buyers, especially those purchasing property in smaller towns, the change could minimise paperwork. If the above proposal is implemented, the revised threshold might make compliance easier for smaller property transactions.
PAN Requirement For Property Transaction
At present, a person has to provide PAN when buying or selling immovable property such as a house, flat or plot if the transaction value exceeds Rs 10 lakh. Under the draft rules, property transactions under Rs 20 lakh would no longer require a PAN declaration. However, PAN details are still required for property transactions worth Rs 20 lakh or more, as they are now.
The proposal also makes it clear that if the value of an arrangement exceeds a particular limit, it will be subjected to PAN reporting requirements. Examples of these arrangements include property transfers through gifts or joint development agreements.
PAN Mandatory For Higher Value Deals
PAN requirements are not completely eliminated under the proposal. PAN disclosure will still be needed for property transactions worth Rs 20 lakh or more. This helps tax authorities in tracking high value real estate transactions and linking property purchases with a person’s income records.
