The Government of India has prepared for major changes in the income tax rules. The Central Board of Direct Taxes (CBDT) has issued draft rules under the new Income Tax Act, 2025. According to these new rules, the rules of depositing cash, buying a car and investing in property have been made easier for the common man. All these changes are going to be implemented from April 1, 2026, which will have a direct impact on taxpayers and the general public.
What is the new rule on cash deposit and withdrawal?
According to the new draft rules, now the rules related to PAN card for depositing or withdrawing money in the bank have been relaxed. Earlier, it was mandatory to provide PAN card if you deposited more than Rs 50,000 in a day. Now this rule has been changed.
Under the new rule, if a person deposits or withdraws Rs 10 lakh or more in total cash in the entire financial year, then it will be mandatory to give him a PAN card. This limit will be considered for one or more accounts combined. This will free small businessmen and common people from the hassle of giving PAN again and again.
New limit for hotel, car and property
The government has also changed the spending limits, which will provide relief to the people. Now there will be no need to give PAN card for small purchases. You can easily understand these changes in the table given below:
Transaction Type
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New rule (from 1 April 2026)
Hotel/Restaurant bill is more than Rs 50,000, PAN is mandatory if it is more than Rs 1 lakh, PAN is mandatory for all four-wheelers, PAN is mandatory for vehicles costing more than Rs 5 lakh, PAN is mandatory only for vehicles costing more than Rs 10 lakh, PAN is mandatory if it is more than Rs 10 lakh, PAN is mandatory for more than Rs 20 lakh.
Apart from this, it has now been made mandatory to provide PAN card when opening any new account with the insurance company, irrespective of the premium amount.
HRA benefits and other changes in metro cities
There is good news for employed people also. Now four new cities have been given ‘Metro City’ status for House Rent Allowance (HRA). This includes Bengaluru, Hyderabad, Pune and Ahmedabad. Now people living in these cities will also be able to claim up to 50% HRA like Delhi, Mumbai, Kolkata and Chennai.
Besides, the relaxation in motor allowance has also been increased. The allowance of Rs 8,000 per month for vehicles up to 1600cc and Rs 10,000 per month for vehicles larger than that will now be tax-free. To promote digital payments, Digital Rupee (CBDC) has also been declared as a valid method of electronic payment.
