There may be a big relief news for people who dream of buying a house. The Income Tax Department has issued draft rules under the new proposed Income Tax Framework, in which changes have been suggested in the PAN rules related to property purchase and sale. If these rules are finally implemented, the process may become easier than before for those buying low-cost properties.
At present the rule is that if a person buys or sells immovable property like house or plot worth more than Rs 10 lakh, then it is mandatory for him to give his PAN number. That means, PAN information has to be entered in every deal above Rs 10 lakh. But in the new draft rules, there is a proposal to increase this limit to Rs 20 lakh. This would mean that if the price of the property is less than Rs 20 lakh then it will not be necessary to quote PAN in that transaction.
They will get relief
This change may bring relief especially to buyers in small cities and towns, where houses or land are still available within Rs 20 lakh. People living in such areas will have to face less paperwork and small transactions can be relatively easy. However, it is important to keep in mind that these are just draft rules at this time. The government has issued these as suggestions and the final decision will be taken only after taking feedback. It is expected that if everything goes as per plan, these new rules may come into effect from April 1, 2026.
These rules will also change
Not only is there a proposal to increase the limit, but some other important changes have also been talked about. For example, if someone receives property as a gift or there is a transfer of land or flat under a joint development agreement, such cases are also suggested to be brought under the ambit of PAN compliance, provided their value exceeds the prescribed limit. Its purpose is to maintain monitoring of large and complex deals, while providing relief to small deals.
Tax experts believe that this change has been suggested keeping in mind the rising property prices. Real estate prices have increased significantly in the last few years. In such a situation, the limit of Rs 10 lakh is now considered very small in many places. The proposed limit of Rs 20 lakh is considered closer to the current market conditions.
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