The Central Board of Direct Taxes (CBDT), as part of the Draft Income-tax Rules, 2026, has proposed Rule 158, which lays down the revised framework for application for allotment of a Permanent Account Number (PAN). This rule aligns procedural aspects of PAN allotment with the Income-tax Act, 2025, and reflects the government’s broader push towards digitisation, standardisation, and improved identity verification.
Rule 158 replaces the corresponding provisions under the Income-tax Rules, 1962 and seeks to streamline PAN application, particularly for individuals, entities, and specified persons required to obtain PAN under the new law.
Applicability of Rule 158
Rule 158 applies to:
- Persons required to obtain PAN under the Income-tax Act, 2025
- Applicants seeking PAN for the first time
- Applicants mandated to quote PAN for specified transactions
- Certain classes of non-residents and entities notified by CBDT
Manner of Application for PAN under Rule 158
Under the proposed rule, application for PAN must be made in the prescribed form, following the procedure, manner, and verification mechanism as specified by the tax authorities.
Key procedural highlights:
- Application may be filed electronically or through notified facilitation centres
- Aadhaar-based authentication or other prescribed digital verification may be mandatory for specified applicants
- Supporting documents must be furnished electronically, unless otherwise notified
Prescribed Form for PAN Application
Rule 158 empowers CBDT to notify the relevant application form for PAN allotment.
| Particulars | Details |
|---|---|
| Purpose | Application for allotment of PAN |
| Applicable Form | To be notified (corresponding to existing PAN application forms) |
| Mode of Filing | Electronic/other prescribed manner |
| Verification | Digital verification / Aadhaar authentication / prescribed methods |
Identity, Address and Other Prescribed Details
The rule mandates the furnishing of prescribed identity and address details, which may vary based on the category of applicant.
| Category of Applicant | Key Details Required |
|---|---|
| Individual (Resident) | Aadhaar, identity proof, address proof |
| Individual (Non-Resident) | Passport / notified documents |
| Company / Firm / Trust | Incorporation or registration details |
| Other Persons | Prescribed identification documents |
CBDT may notify relaxed documentation norms for certain applicants to improve ease of compliance.
Digital PAN and Allotment Mechanism
Rule 158 also enables PAN to be:
- Allotted electronically
- Delivered in digital format, unless physical PAN is specifically requested
- Linked with Aadhaar or other notified identification systems, where applicable
This is in line with the government’s objective of paperless tax administration.
Comparison with Existing PAN Rules
| Aspect | Old Rules (IT Rules, 1962) | Draft Rule 158 (IT Rules, 2026) |
|---|---|---|
| Governing Law | Income-tax Act, 1961 | Income-tax Act, 2025 |
| Filing Mode | Physical / Electronic | Primarily electronic |
| Verification | Manual/limited digital | Digital & Aadhaar-based |
| PAN Format | Physical & e-PAN | Emphasis on digital PAN |
| Administrative Flexibility | Limited | Greater CBDT discretion |
Impact on Taxpayers and Professionals
The proposed Rule 158 is expected to:
- Reduce processing time for PAN allotment
- Improve accuracy through digital verification
- Minimise duplication and misuse of PAN
- Simplify onboarding for new taxpayers and entities
For tax professionals and chartered accountants, the rule brings greater clarity and uniformity in advising clients on PAN compliance under the new tax regime.
Conclusion
Rule 158 of the Draft Income-tax Rules, 2026 marks a significant procedural upgrade in the PAN allotment mechanism. By leveraging technology and aligning with the Income-tax Act, 2025, the proposed rule aims to make PAN application simpler, faster, and more secure.
Stakeholders are encouraged to review the draft rule carefully and submit their feedback to CBDT during the consultation window.
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