Starting April 1, 2023, the Indian government has implemented new rules regarding the Permanent Account Number (PAN) application process, introducing stricter identity verification requirements. The previous application forms, Form 49A and Form 49AA, have been replaced by four new forms tailored for different applicant categories, including Indian citizens, foreign entities, and non-citizen individuals. Notably, Aadhaar is no longer sufficient for verifying date of birth; applicants must now provide additional documentation such as a birth certificate or Class 10 certificate.

In a significant shift, the government has also raised the thresholds for when PAN needs to be quoted during transactions. For example, PAN will only be required for banking transactions if cash deposits or withdrawals exceed ₹10 lakh (roughly $12,000 USD) annually. Other thresholds have also been adjusted, such as property transactions above ₹20 lakh (roughly $24,000 USD) and motor vehicle purchases above ₹5 lakh (roughly $6,000 USD). This change is expected to ease compliance for routine transactions, although cumulative activity will be monitored more closely by banks and tax authorities.

Despite these relaxed quoting requirements, it remains crucial for applicants to link their PAN with Aadhaar to avoid penalties such as higher tax deductions or delays in tax refunds. Overall, while the new rules aim to streamline the PAN application process, they also emphasize the importance of document consistency.