The new I-T rules have specified the list where quoting of PAN will be mandatory: cash deposits or withdrawals aggregating to Rs 10 lakh or more in a financial year, in one or more accounts of a person, will require mandatory quoting of the PAN.Incorporation of meal vouchers for employees under the new income tax regime, revision of employer-provided perquisites, inclusion of electric vehicles as a tax benefit, and a hike in children’s education and hostel allowances, along with higher monetary thresholds for quoting Permanent Account Number (PAN) for deposits, withdrawals, and purchase of motor vehicles and property, are among the key changes under the new Income-tax Rules, 2026, set to come into effect from April 1.In a notification on Friday, the Central Board of Direct Taxes (CBDT) also specified inclusion of four major cities — Bengaluru, Hyderabad, Pune and Ahmedabad — for 50% house rent allowance (HRA) benefit, bringing them at par with the metropolitan cities of Mumbai, Kolkata, Delhi, Chennai. The Income Tax Department has also notified a separate form for employees to furnish details of claims made at the time of tax deduction at source (TDS) by employers, making it mandatory for them to provide details of the landlord if they claim HRA. The PAN of the landlord has to be furnished if the aggregate rent paid during the Tax Year exceeds Rs 1 lakh.Amit Maheshwari, Managing Partner, AKM Global, a tax and consulting firm said the updation of perquisite rules to explicitly include electric vehicles within the concessional valuation slab for employer-provided motor cars and expansion of 50% HRA benefit to major cities apart from the four metros are the two major changes for individual taxpayers. “EVs are now treated at par with cars having engine capacity not exceeding 1.6 litres for the purpose of valuing perquisites when the vehicle is used partly for official duties and partly for personal purposes… this amendment was necessary because earlier rules linked perquisite valuation solely to an engine capacity threshold, an attribute irrelevant for electric vehicles. By formally adding EVs to the concessional slab, the government removes long standing ambiguity for employers and payroll teams,” he said.Under the new rules, monthly taxable perquisite value for an EV used partly for official and partly for personal purposes will be: Rs 5,000 per month (plus Rs 3,000 if a chauffeur is provided) where the employer bears the running and maintenance expenses, or Rs 2,000 per month (plus Rs 3,000 if chauffeur is provided) where the employee bears the cost of personal use running and maintenance.The new rules should greatly help employers and employees given the recalibrated and realigned limits for various employee perquisites and exemptions, Suresh Kumar S, Partner, Deloitte India, said. “While these are largely applicable for those in the old regime, employees under the new regime should also benefit,” he said.While most of the employee tax benefits are under the old tax regime, one of the key inclusions for employees under the new income tax regime are meal coupons under the notified rules. “Meal vouchers up to Rs 200 per meal are not taxable and this is also applicable for those under the new tax regime. This will equate to Rs 4400 for one meal a day or Rs 8800 for two meals a day basis 22 working days a month,” Kumar S said.The I-T rules specify exemption for “free food and non-alcoholic beverages” provided by employers during working hours at office or business premises or “through paid vouchers usable only at eating joints” for value not exceeding Rs 200 per meal. “Crucially, the old carve out that denied this small meal relief to employees opting for the new regime has not been carried forward. In the 1962 framework, Rule 3(7)(iii) expressly taxed meal benefits for 115BAC opt ins even below the then limit (Rs 50), but that restriction seems absent in the 2026 text. So, the benefits should be available for the new regime as well,” Maheshwari said.Story continues below this adWhile the HRA benefits expansion to other major cities were welcomed by experts, some noted that other high-rent, high-density employment hubs like Noida, Gurugram, and Navi Mumbai have been left out. “These cities will continue to fall under the 40% HRA bracket. The expectation was that the rapid urbanisation and high rental costs in NCR extensions and satellite cities would justify their inclusion. However, the government’s approach appears to focus on cities whose economic and taxpayer concentration has reached Tier 1 levels over the past decade,” Maheshwari said.The new I-T rules have specified the list where quoting of PAN will be mandatory: cash deposits or withdrawals aggregating to Rs 10 lakh or more in a financial year, in one or more accounts of a person, will require mandatory quoting of the PAN. Presently, PAN is required to be quoted for cash deposits exceeding Rs 50,000 during any one day with a banking company or a co-operative bank. Similarly, the monetary threshold for quoting PAN has been set at Rs 5 lakh in case of purchase of motor vehicles (including motorcycles). Under the current I-T rules, PAN was required to be cited for sale or purchase of a motor vehicle or vehicle, other than two-wheelers.In the hospitality sector, PAN will be mandatory for hotel or restaurant bills, or convention centres or banquet halls or for payment to a person engaged in event management, for payments over Rs 1 lakh. The existing rules mandate quoting of the PAN for payments exceeding Rs 50,000 in case of hotel or restaurant bills. Also, PAN will be mandatory if the transaction cost is over Rs 20 lakh, nearly double the existing limit of Rs 10 lakh, in case of purchase or sale or gift or joint development agreement of any immovable property.Aanchal Magazine is a Deputy Associate Editor with The Indian Express, serving as a leading voice on the macroeconomy and fiscal policy. With 15 years of newsroom experience, she is recognized for her ability to decode complex economic data and government policy for a wider audience. Expertise & Focus Areas: Magazine’s reporting is rooted in "fiscal arithmetic" and economic science. Her work provides critical insights into the financial health of the nation, focusing on: Macroeconomic Policy: Detailed tracking of GDP growth, inflation trends, and central bank policy actions. Fiscal Metrics: Analysis of taxation, revenue collection, and government spending. Labour & Society: Reporting on labour trends and the intersection of economic policy with employment. Her expertise lies in interpreting high-frequency economic indicators to explain the broader trajectory of the Indian economy. Personal Interests: Beyond the world of finance and statistics, Aanchal maintains a deep personal interest in the history of her homeland, Kashmir. In her spare time, she reads extensively about the region's culture and traditions and works to map the complex journeys of displacement associated with it. Find all stories by Aanchal Magazine here ... Read More © The Indian Express Pvt LtdTags:income taxincome tax act