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.