Buying cars, depositing cash to get easier under draft I-T rules

New Delhi: Draft Income Tax Rules have proposed significantly raising transaction limits for quoting of PAN for cash deposits/withdrawal in banks, purchase of motor vehicles and property, and payment of hotel bills. The draft also proposes raising the value of perquisites provided by employers, and making it mandatory for crypto exchanges to share information with the tax department. It also includes Central Bank Digital Currency (CBDC) as an accepted mode of electronic payment.

The draft rules have expanded the list of Category 1 metropolitan cities to include Bengaluru, Pune, Ahmedabad, and Hyderabad for the purpose of claiming house rent allowance (HRA). The list includes Delhi, Mumbai, Kolkata, and Chennai.

The Central Board of Direct Taxes (CBDT) will finalise rules after stakeholder consultation and will notify them by the first week of March, Finance Ministry sources said. The Income Tax Rules are being finalised to give effect to the Income Tax Act, 2025, which will be implemented from April 1. According to the proposed Income Tax Rule, 2026, quoting of Permanent Account Number (PAN) will be mandatory for making cash deposits or withdrawals aggregating to Rs 10 lakh or more in a financial year, in one or more accounts of a person. Presently, PAN is required for cash deposits exceeding Rs 50,000 during any one day with a banking company or a cooperative bank.