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Cash transactions of ₹20 lakh or more: Who must quote PAN under new 2026 Rules?
So the taxman is back. Rule 161 of the Draft Income Tax Rules 2026 targets big cash. The goal? Clear trails. In fact, the state wants to stop tax theft. Plus, the Street is talking.
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New Cash Limits
But here is the main part. You need a PAN for cash in of ₹20 lakh or more. Is it per year? Yes. And this limit counts all your bank accounts. Consequently, banks will watch every note.
Moreover, the rules changed for cash out too. Now, taking out ₹20 lakh in cash needs a PAN card. Before, some gaps remained. So post offices and small banks must now check your ID. There is no hiding.
Summary of 2026 PAN Rules for High-Value Transactions
| Transaction Type | Cash Limit (Annual) | PAN Card Needed? |
| 🏦 Cash Deposit | ₹20 Lakh or more | MANDATORY |
| 💸 Cash Withdrawal | ₹20 Lakh or more | MANDATORY |
| 📂 Opening Current Account | Any Amount | MANDATORY |
| 🏛️ Govt. Transactions | Any Amount | EXEMPT (No) |
| 🌍 Consular Offices | Any Amount | EXEMPT (No) |
New Bank Rules
Still, new accounts have hurdles. You need a PAN to start a current account. The task? A must. And the job of checking lies with the banks. Accordingly, they must check your data fast.
But some people get a pass. Specifically, the State and Central Govts are exempt. Why? Law. Plus, foreign consuls do not need to show a PAN. Essentially, they sit outside these draft rules.
Global Rules
Then there is the IFSC case. Non-residents using IFSC units might avoid the PAN trap. The rule? No Indian tax due. And global firms get this same perk in the IFSC zone. Indeed, it keeps Gift City busy.
Worth noting: The Tax Chief handles all digital checks. They track the prints of your cash. So if you move 50 grand in bags, have your card ready. Ultimately, the tax office is watching.
Frequently Asked Questions (FAQs)
Do I need a PAN for cash transactions of ₹20 lakh or more? So the answer is yes under the 2026 rules. Because of this, you must show your PAN for big cash deals.
Who is exempt from quoting PAN for large cash transactions? In fact, the State and Central Govts are free from this rule. Additionally, some global units in IFSC zones are also exempt.
What happens if I deposit ₹30 lakh without a PAN? But the bank will block the deal. Consequently, they must check your PAN before they take the cash.
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