Buying or selling a lowvalue property may soon involve less paperwork. The Income Tax Department has proposed new draft rules that would remove the need to provide a Permanent Account Number (PAN) for property transactions below Rs 20 lakh. If the proposal is finalised, the change will come into effect from April 1, 2026.
The move is part of the released under the proposed new income tax framework.
At present, PAN must be quoted when buying or selling immovable property, such as a house, flat, or plot, if the transaction value exceeds Rs 10 lakh.
This means property transactions below Rs 20 lakh would no longer require mandatory PAN disclosure. However, deals worth Rs 20 lakh or more would still need PAN details, just as they do now.
The draft also makes it clear that certain arrangements, such as property transfers through gifts or joint development agreements, would fall under PAN reporting rules if their value crosses the specified limit.
Property prices have increased significantly over the years, and the existing Rs 10 lakh threshold often covered even modest transactions. By raising the limit to Rs 20 lakh, the government appears to be adjusting the rules to reflect current market realities.
For smaller buyers, especially those purchasing in smaller towns or dealing with family property transfers, the change could reduce paperwork. While PAN will still be needed for most urban property deals, lowervalue transactions may become simpler to complete.
Tax experts say the revision recognises that property values have risen and that the earlier limit no longer reflected the true value of many homes.
The proposal does not remove PAN requirements altogether. Property transactions worth Rs 20 lakh or more will continue to require PAN disclosure.
This helps tax authorities link property purchases with a person’s income records and monitor highvalue real estate transactions. PAN reporting is also used to track potential tax evasion and ensure transparency in the property market.
If the above proposal is implemented, the revised threshold could ease compliance for smaller property transactions while keeping stricter reporting in place for highervalue deals.