If you hold a PAN card, are planning to apply for one, or run a business that routinely quotes PAN in transactions- today, April 1 marks a significant shift in how India’s Permanent Account Number (PAN) regime works. The changes are wide-ranging and immediate.
New forms, stricter documentation, higher thresholds, and a key CBDT clarification on bank TDS- here is a complete breakdown of the changes and what they mean for you.
Here is everything you need to know:
Change 01: New Application Forms
The long-standing Forms 49A (for Indian residents) and 49AA (for NRIs and foreign nationals) are being retired. From April 1, 2026, the Income Tax Department will only accept applications on the new prescribed forms.
| Old Form | Purpose | New Form |
| 49A | For Indian residents and citizens applying for a new PAN. | 93 |
| 49AA | For Non-Resident Indians (NRIs) and foreign nationals. | 95 |
Any application submitted on the old forms after April 1 will not be processed. If you have a pending application, verify which form it was filed on.
Change 02: Only Aadhaar Alone Is No Longer Sufficient
The era of Instant PAN using only Aadhaar is over. Additional documentation is now mandatory for all new applications.
One of the most impactful changes for individual applicants: Aadhaar by itself will no longer be enough to obtain a PAN card. The government’s ‘Instant PAN’ facility, which allowed applicants to get a PAN using only their Aadhaar number, has been discontinued.
Going forward, all applicants must provide a separate Date of Birth (DOB) proof document alongside their Aadhaar. Accepted documents include:
| Birth Certificate |
| Matriculation Certificate |
| Passport |
| Voter ID Card |
| Driving Licence |
| Magistrate-signed Affidavit |
If you are helping a family member, particularly an elderly parent or a young adult applying for their first PAN, ensure one of the above documents is ready before initiating the application.
Change 03: Name Must Exactly Match Aadhaar
From April 1, the name entered on your PAN application must be an exact match to the name recorded in your Aadhaar database, character for character, including initials and spelling.
Even minor discrepancies such as a missing middle name, an abbreviated initial, or a spelling variation can result in rejection. Before applying, cross-check your Aadhaar name carefully and, if required, update it through the UIDAI portal first.
Change 04: PAN Quoting Thresholds Revised Upward
The Income Tax rules specifying when PAN must be quoted in financial transactions have been updated. The new limits, effective April 1, are as follows:
| Transaction Type | New Threshold | Earlier Limit |
|---|---|---|
| Cash deposits / withdrawals (annual) | ₹10 Lakh/year | ₹50,000/day |
| Immovable property purchase/sale | ₹20 Lakh | ₹10 Lakh |
| Motor vehicle purchase | ₹5 Lakh | — |
| Hotels / restaurants / events | ₹1 Lakh | — |
The shift from a per-day cash limit to an annual aggregate is important to note. Businesses handling large cash flows will need to track annual customer-level aggregates rather than daily transaction limits.
No Rule on TDS rule on Bank Interest
There had been some uncertainty in the banking and finance community arising from a revised definition of ‘banking company’ in the new Income-tax Act, 2025. The concern was whether these definitional changes would alter the TDS applicability on interest earned from bank deposits.
The Central Board of Direct Taxes (CBDT) has now formally clarified: TDS rules on bank interest remain unchanged. The existing provisions continue to apply as before, and no fresh compliance actions are required by banks or depositors on account of these definitional changes alone.
Have questions? Let us help.
These changes affect individuals, salaried employees, business owners, and NRIs. Whether you have a pending application, need to update your Aadhaar details first, or want to understand how the new thresholds affect your business’s transaction reporting, feel free to contact us at taxavk@gmail.com or fill our contact form here. We are always ready to help you out.
Kapoor Kumar & Associates (taxavk) 