New PAN Card Rules: Property Transactions Below ₹20 Lakh No Longer Require PAN

Recent tax reforms in India have raised the PAN card requirement threshold for property transactions from ₹10 lakh to ₹20 lakh. This change, effective immediately, means that individuals buying or selling properties valued below ₹20 lakh will no longer need to provide a PAN number. This new regulation aims to ease the burden on small buyers, particularly in rural areas, by reducing paperwork and simplifying the transaction process. However, transactions exceeding ₹20 lakh will still require a PAN, especially for tax exemption claims on capital gains. Learn more about how these changes can benefit you.

By Narendra Chaudhary Apr 2, 2026, 10:00 IST

Changes to PAN Card Requirements

According to recent tax reforms, the requirement to provide a PAN card for property transactions has been updated. Previously, transactions exceeding ₹10 lakh necessitated a PAN card; this threshold has now been raised to ₹20 lakh.

What’s the New Rule?
Effective immediately, if you are involved in buying or selling a property, flat, shop, or plot valued at less than ₹20 lakh, you will no longer need to provide your PAN number.

Previous Regulation: The earlier limit was set at ₹10 lakh, meaning any property transaction above ₹10,00,001 required a PAN.

New Regulation (Effective April 1, 2026): Transactions up to ₹20 lakh are now exempt from the PAN requirement.

Benefits for Small Buyers and Rural Areas
This initiative is expected to significantly assist individuals in smaller towns and rural regions.

Reduced Paperwork: Buyers of smaller plots or homes will experience fewer hassles during registration if they do not possess a PAN card.

Ease of Doing Business: The process for transferring lower-value properties will become faster and more straightforward.

When is PAN Required?
It’s important to note that this exemption applies only to lower-value properties.

If the property price is ₹20 lakh or more, a PAN card will still be necessary.
Additionally, if you wish to claim tax exemptions on capital gains from selling property, a PAN will be required.
For large payments made through banking channels, banks may require a PAN under their KYC (Know Your Customer) regulations.

Old Rule (Until March 31) New Rule (From April 1)
PAN requirement threshold: Over ₹10 lakh Over ₹20 lakh
A PAN was mandatory for properties worth ₹15 lakh No PAN required
Impact: Burden on middle-class buyers Relief for small and medium buyers