Significant Changes in PAN Rules under New Income Tax Rules, 2026
1. Legislative Framework
- Prior to 1st April, the provisions relating to Permanent Account Number (PAN), including its application, allotment, and mandatory quoting, were governed by Rule 114 of the Income-tax Rules, 1962.
- Pursuant to the restructuring under the new Income-tax Rules framework, the corresponding provisions have been realigned and are now contained in Rule 158
2. Application Forms
|
Applicant Type |
Old Form |
New Form |
|
Number of Forms |
2 Forms (49A & 49AA) |
4 Forms (93,94,95,96) |
|
Indian Individual |
Form 49A - covered both individuals and all Indian entities |
Form 93 - dedicated only to Individual Indian Citizen |
|
Indian entity (company / LLP / firm / HUF / trust / AOP / BOI / AJP) |
Form 49A - shared with individuals; no separate entity form |
Form 94 - dedicated entity form; covers all Indian non-individual entities |
|
Foreign individual |
Form 49AA - covered both foreign individuals and foreign entities |
Form 95 - dedicated for foreign individuals (OCI, foreign nationals) |
|
Foreign entity |
Form 49AA - shared with foreign individuals |
Form 96 - dedicated for entities incorporated outside India; TIN mandatory |
|
NRI (Indian Citizens Abroad) |
Form 49A |
Form 93 - mark residential status as "Non-Resident" |
|
Sole Proprietor |
Form 49A in Entity Name |
Form 93 – Proprietor shall apply in their own personal name (Not in name of Business) |
|
Minor Applicant |
Form 49A with Representative Assesse (RA) details |
Form 93 – Aadhaar + Photo of Minor + Identity and address proof of RA |
3. Correction Forms
|
Applicant Type |
Old Form |
New Form |
|
Individual |
CSF (Change/ Correction) - Common for all |
PAN CR - 01 - dedicated individual correction form |
|
Non - Individual |
CSF Form shared with Individual |
PAN CR - 02 - dedicated entity correction form |
4. Documents Required
|
Proof Type |
Before April 1, 2026 |
After April 1, 2026 |
|
Overall Requirement |
Aadhaar alone was sufficient - One document Instant process |
No single - Document Route |
|
Identity Proof |
Aadhaar (as Sole Doc) or Any Standard ID) |
-Aadhaar -Indian Passport -Voter ID -Driving License -Ration Card with Photo -Government Photo ID -Pensioner card -CGHS Card, -MP/MLA/Gazetted Officer Certificate -Bank Certification Transgender Identity Card is new Key Addition to the List |
|
Address Proof |
Standard List including Aadhaar |
-Aadhaar -Indian passport -voter ID -Transgender Identity Card -passport of Spouse -driving licence -post office passbook -domicile certificate -government allotment letter (within 3 Months) -Property Registration Document -utility Bills (within 3 Months) -credit card statement (not older than 3 Months) -MP/MLA/Gazetted Officer Certificate -Employer Certificate -Property tax assessment order -Depository account statement (Not more than three months old) |
|
Date of Birth |
No separate DOB proof required i.e. AADHAAR serve as proof of identity, address & Birth |
Mandatory to submit a Proof of birth AADHAAR is removed as a proof of birth. -Birth Certificate Class 10/ Matriculation mark sheet -Indian Passport -Voter ID -Driving License -Magistrate’s Affidavit -CGHS/ Government Photo ID with DOB -Transgender Identity Card -Domicile Certificate -Pension Payment Order -Marriage Certificate |
|
Passport Convenience |
Not highlight as a Shortcut |
Passport alone satisfies all 3 proof categories |
5. Aadhaar-Pan Linkage & Name matching
|
Aspect |
Before |
After |
|
Name on PAN Card |
Applicant can Customize name |
Name pulled directly from Aadhaar database – No Customization allowed |
6. Transaction where PAN is mandatory
|
Transaction Type |
Old Threshold |
New Threshold |
|
Cash deposits/ withdrawal |
Rs. 50,000 per day per transaction |
Rs. 10 Lakh cumulative per financial year |
|
Motor Vehicle (4 wheeler) |
All Vehicles |
Rs 5 Lakh and above |
|
Motor Vehicle (2 Wheeler) |
All Vehicles |
Rs 5 Lakh and above |
|
Hotel/ Event payment |
Rs 50,000 per transaction |
Rs 1 Lakh per transaction |
|
Immovable property |
Rs 10 Lakh |
Rs 20 Lakh |
Disclaimer: This material and the information contained herein is intended for clients and other Chartered Accountants to provide updates and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.
