The Government of India, in collaboration with the Income Tax Department and the Ministry of Housing and Urban Affairs, has made it mandatory to quote the Permanent Account Number (PAN) in all real estate agreements, regardless of the transaction value. This new compliance measure aims to increase transparency, curb tax evasion, and create a more accountable real estate sector by ensuring a clear digital trail of ownership and transactions.

Under the revised norms, buyers and sellers must provide their valid PAN in sale deeds, purchase agreements, lease agreements (over a defined value or term), joint development agreements, and property registration documents. Earlier, PAN was required primarily for transactions exceeding ₹10 lakh or where TDS under Section 194-IA applied. Now, even lower-value transactions, if recorded legally, must include PAN to be considered valid under income tax and registration laws.

Registrars, notaries, real estate agents, and financial institutions involved in processing property-related transactions have been instructed to verify the PAN of all parties and ensure its linkage with Aadhaar, wherever applicable. Failure to furnish or validate PAN may result in refusal of document registration, denial of tax deductions or exemptions, and regulatory scrutiny. This mandate aligns with the government’s effort to build a digitally integrated, fraud-resistant real estate compliance framework and promotes fair practices in both residential and commercial property markets.