In a significant move aimed at strengthening financial transparency, the government has made it mandatory to submit a PAN card for purchasing any vehicle priced above ₹5 lakh. This rule applies across India and marks an important change in vehicle purchase regulations.
Rule Applies to Two-Wheelers as Well
Earlier, PAN card submission was compulsory only for cars and higher-end vehicles. Under the new regulation, even two-wheelers such as bikes and scooters will require PAN details if their on-road price exceeds ₹5 lakh.
This change primarily impacts premium motorcycles and luxury scooters, which were previously outside the PAN compliance framework.
Objective Behind the New Rule
According to officials, the primary aim of this measure is to curb black money usage in high-value transactions and ensure that such purchases are properly tracked within the income tax system.
By linking PAN with expensive vehicle purchases, authorities can better monitor financial transactions and identify discrepancies between declared income and spending patterns.
Existing Rules for Cars Continue
For cars and other four-wheelers, PAN card submission was already mandatory. The latest update extends the same compliance norms to all categories of vehicles once the purchase value crosses the ₹5 lakh threshold.
What Buyers Need to Know
Vehicle buyers should ensure that their PAN card details are readily available at the time of purchase. Dealers will be required to collect and report PAN information for eligible transactions as part of statutory compliance.
Failure to furnish PAN details may result in the transaction being delayed or rejected, as dealerships are expected to strictly follow the updated guidelines.
Impact on Buyers and Dealers
While the rule may slightly increase documentation requirements for buyers, experts believe it will contribute to a more transparent automobile market. Dealerships will also need to update their billing and reporting systems to align with the new mandate.
The move is part of a broader effort by tax authorities to bring high-value purchases under closer financial scrutiny and promote accountability in consumer spending.
