Higher PAN Threshold Simplifies Small Property Deals, Boosts Market Activity

Starting April 1, the government has raised the threshold for mandatory PAN disclosure in property transactions from Rs 10 lakh to Rs 20 lakh. Real estate developers have welcomed this move, stating that it is expected to ease the execution of smaller deals, particularly in semi-urban and rural markets.

Until now, even modest property transactions required PAN details at the time of registration. In smaller towns, where documentation gaps are common, this requirement could delay deals that were otherwise ready to close. For instance, a buyer purchasing a Rs 15 lakh plot earlier had to complete PAN-related formalities before registration. Any delay in documentation could push timelines by days or even weeks.

With the revised threshold, such transactions can now proceed without that additional step, making the process smoother for both buyers and sellers, according to developers. For first-time buyers, especially those outside the formal financial ecosystem, the move reduces compliance-related friction and lowers the entry barrier to property ownership. Sellers, too, stand to benefit in markets where low-value transactions are frequent and time-sensitive.

It is important to note that capital gains, where applicable, remain the same. The reform is limited to easing procedural requirements, not relaxing tax compliance. Sandeep Agarwal, executive director (finance & group CFO) of Elan Group, said, “The enhancement of the PAN threshold to Rs 20 lakh for property transactions reflects a forward-looking reform aimed at rationalising compliance while maintaining transparency in the sector. By easing requirements for lower-value transactions, this step simplifies the homebuying process for a wider base of first-time purchasers, while still ensuring traceability in higher-value deals. Such policy reforms will boost end-user demand, increase activity in the affordable segment and help consumers better plan their investments and savings.”

Rajat Bokolia, CEO of Newstone, added, “The revision of PAN applicability for property transactions above Rs 20 lakh under the Income Tax Rules, 2026, reflects a calibrated policy shift aimed at balancing compliance with market accessibility. By increasing the threshold from ₹10 lakh, the government has reduced procedural friction for smaller transactions, especially benefitting affordable housing buyers and semi-urban markets. At the same time, mandatory PAN requirements for higher-value deals will improve traceability and reduce unaccounted cash flows.”

Rahul Singla, director of Mapsko Group, said it would simplify transactions for small buyers and first-time investors while encouraging broader participation in real estate. Pushpender Singh, managing director of JMS Group, noted that the revision “strikes a balance between transactional convenience and regulatory supervision,” adding that while smaller deals become easier, higher-value transactions will continue to be closely tracked.

This move is expected to have a positive impact on the real estate market, particularly in the affordable housing segment, by reducing procedural hurdles and making it easier for first-time buyers to enter the market. It also aligns with the government's broader goal of promoting transparency and efficiency in property transactions.