- PAN mandatory vehicles rule under new Income Tax Act 2025
- PAN mandatory vehicles rule alters transaction reporting norms
Hyderabad: PAN mandatory vehicles rules will soon change how high value purchases are reported. From now on, buyers must disclose PAN when purchasing vehicles costing more than Rs 5 lakh. This new requirement will also apply to two wheelers, including bikes and scooters, under revised income tax rules.
At present, PAN disclosure is not required for two wheelers, no matter how expensive the purchase is. However, PAN is already mandatory for other vehicles like cars, regardless of price. This distinction will end with the new rules, therefore bringing two wheelers under stricter reporting norms.
Meanwhile, the Centre plans to introduce the Income Tax Act, 2025 from April 1. This law will amend the currently enforced Income Tax Rules, 1962. As part of this process, authorities have made several changes in the draft income tax rules, which are likely to be notified in the first week of March.
PAN mandatory vehicles rules are part of a broader overhaul of transaction limits. With these amendments, the threshold for transactions requiring PAN disclosure will rise significantly. Therefore, the reporting burden will shift from smaller transactions to larger financial movements.
Currently, depositing more than Rs 50,000 in a bank account at one time requires PAN disclosure. Under the new rules, individuals will need to report PAN only when deposits or withdrawals reach Rs 10 lakh or more in a financial year, across one or multiple accounts.
Similarly, PAN norms for hospitality spending will also change. At present, hotel, restaurant, or convention centre bills of Rs 50,000 or more require PAN. From now on, PAN will be mandatory only if the bill exceeds Rs 1 lakh, easing compliance for smaller expenses.
The draft rules also revise property transaction limits. The existing Rs 10 lakh threshold for purchase, sale, or transfer of immovable property will increase to Rs 20 lakh. This change aligns with the broader aim of focusing on higher value transactions.
Also, the draft rules classify Hyderabad, Bangalore, Pune, and Ahmedabad as Category 1 metropolitan cities. As a result, employees living in these cities will receive higher HRA allowances. Together, these measures reflect a major shift in tax reporting priorities alongside PAN mandatory vehicles norms.
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