Is PAN Mandatory for Property Transactions?

If one of the parties does not have a PAN, do not assume that the transaction can automatically proceed using an alternative declaration.

The Income-tax Rules, 2026 provide for Form 97 in specified cases involving people who do not have PAN. However, eligibility and the circumstances in which a declaration can be used are limited. The rules also contain requirements relating to applying for PAN in certain higher-value property transactions.

I would check the current Rule 159 and related provisions before relying on Form 97. An NRI should also check whether a specific exception applies rather than assuming that overseas residence removes the PAN requirement.

If the transaction is already underway, ask the property lawyer or tax adviser to confirm the correct documentation before registration or payment. That is especially important if the seller is non-resident, because the tax deduction process may differ from an ordinary resident-to-resident sale.

If the seller is an NRI or another non-resident for Indian tax purposes, make sure you check the tax deduction rules separately.

For a qualifying property transfer involving a resident seller, section 194-IA generally requires the buyer to deduct TDS when the consideration or stamp duty value reaches the applicable ₹50 lakh threshold. The section also specifies how the threshold works where there are multiple buyers or sellers.

A sale by a non-resident seller may instead fall under a different TDS provision, so you should not automatically use the resident-seller process.

I would confirm the seller's tax residency, the total consideration, and the stamp duty value with the tax professional handling the transaction. If you are the buyer, make sure you understand any TDS obligations before releasing the payment.

PAN quoting, TDS deduction, and property registration are related but separate matters. Meeting one requirement does not automatically mean the others have been met.

The different figures refer to different requirements, so it is important not to treat them as one threshold.

Under Rule 159 of the Income-tax Rules, 2026, PAN must be quoted for covered transactions involving the purchase, sale, gift, or joint development of immovable property when the transaction amount exceeds ₹20 lakh or the stamp valuation exceeds ₹20 lakh. The rule came into force on 1 April 2026.

This means that even if the agreement price is below ₹20 lakh, the stamp valuation could still make PAN quoting necessary.

The ₹50 lakh figure relates to a separate TDS rule for qualifying transfers involving a resident seller. It is not the general PAN-quoting threshold. 

I would check the agreement value and stamp valuation separately, then confirm which requirements apply to the buyer and seller. Older online articles may still refer to previous thresholds, so use current official guidance rather than relying on an old checklist.