Wedding season still runs on a lot of cash: the banquet advance handed over in an envelope, the caterer's balance on the morning of the function, the tent house, the band, the decorator's "final settlement". From 1 April 2026, India's new Income-tax Rules changed one detail that matters here. If you pay more than Rs 1 lakh in cash to a hotel, restaurant, convention centre, banquet hall or event manager against a bill, you now have to quote your PAN on that document.
With the November and December 2026 muhurat dates coming up, this is the season when that rule actually bites. This guide explains what the rule says, how it sits next to the older Rs 2 lakh cash limit, and how to plan wedding payments so that nobody, family or vendor, ends up with a tax problem.
Disclaimer: This is general information based on the published text of the Income-tax Rules, 2026 and the Income-tax Act, 2025, read on 29 October 2026. It is not tax or legal advice. Tax rules are amended often and your facts matter, so speak to a chartered accountant for large or unusual payments.
The short version
- Cash over Rs 1 lakh to a hotel, restaurant, convention centre, banquet hall or event manager, against a bill or bills at any one time: the payer quotes PAN. The business issuing the bill must record it. (Rule 159, row 15)
- Any other goods or services over Rs 2 lakh per transaction, in any payment mode: PAN is quoted. (Rule 159, row 16)
- No PAN? An individual can give a declaration in Form No. 97 instead for these rows.
- Non-residents are exempt from quoting PAN for rows 15 and 16.
- Separately, the vendor cannot receive Rs 2 lakh or more in cash from one person in a day, for one transaction, or for transactions relating to one event or occasion. That is section 186 of the Income-tax Act, 2025, and the penalty falls on the person receiving the cash.
The practical takeaway: for big wedding bills, pay through the bank. Keep cash for small, everyday payments.
What changed from 1 April 2026
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, and the Income-tax Rules, 2026 replaced the old rules. The list of transactions where PAN must be quoted used to sit in Rule 114B. It is now Rule 159.
Two changes matter for weddings:
| Old rule (Rule 114B, till 31 March 2026) | New rule (Rule 159, from 1 April 2026) | |
|---|---|---|
| Who is covered | Hotel or restaurant | Hotel or restaurant, convention centre, banquet hall, any person engaged in event management |
| Cash limit that triggers PAN | Cash exceeding Rs 50,000 at any one time | Cash exceeding Rs 1,00,000 against a bill or bills at any one time |
So the threshold has doubled, but the net is much wider. Earlier, a banquet hall or an event planner that was not a hotel or restaurant was not named in this row. Now they are named explicitly, which puts most of the big-ticket wedding venues and planners inside the rule.
The exact text of row 15 reads: payment to a hotel or restaurant, a convention centre, a banquet hall, or any person engaged in event management, "against a bill or bills at any one time", where the "payment in cash of an amount exceeding Rs. 1,00,000" is made. The person responsible is "the person issuing the document including the bill".
Who does what under the rule
The payer (usually the family):
- Quotes PAN on the bill, receipt or booking document when paying more than Rs 1 lakh in cash at one time to a covered business.
- If the payer has no PAN, signs a Form No. 97 declaration (rule 159(2)(b) allows this for rows 11 to 16, for individuals and others that are not companies or firms).
The business issuing the bill (venue, hotel, planner):
- Must make sure the PAN is verified and correctly mentioned, or that Form No. 97 is properly filled (rule 159(5)).
- Must keep the PAN or Form No. 97 details in its records and use them in information it reports to the tax department.
- Some receivers who collect Form No. 97 declarations also have to file statements in Form No. 98 and keep the forms for six years (rule 160).
In plain terms, this is a reporting rule. Quoting your PAN does not create tax on your wedding spending. It links a large cash payment to your PAN so that it can be matched with your income records later.
How it plays out in real wedding payments
These are illustrative examples, not legal rulings. Amounts are made up for the examples.
| Situation | What applies |
|---|---|
| You pay a banquet hall a Rs 1.5 lakh cash advance in one visit | Row 15: quote your PAN on the receipt |
| You pay the same hall Rs 80,000 cash | Below Rs 1 lakh; row 15 does not require PAN for this payment |
| You pay a hotel Rs 2.5 lakh by bank transfer for a room block | Row 15 is about cash; but the hotel will usually ask for PAN or ID for its own records |
| You pay a caterer (not a hotel or banquet hall) Rs 3 lakh for the full order | Row 16: over Rs 2 lakh per transaction, so PAN is quoted, whatever the payment mode |
| You pay a wedding planner Rs 1.2 lakh cash as part of a bigger bill | Row 15: planner counts as event management; quote PAN |
| An NRI uncle pays the venue directly in cash while visiting | Non-residents are exempt from rows 15 and 16 for PAN quoting, but the venue's Rs 2 lakh cash receipt limit still applies |
| You have no PAN (for example, a retired relative paying) | Form No. 97 declaration instead |
Can you split the cash into two Rs 90,000 payments? The rule talks about a bill or bills "at any one time". Splitting a payment deliberately to stay under a reporting threshold is exactly what tax rules are designed to catch, and it does not help with the separate Rs 2 lakh cash limit, which looks at the whole event or occasion. Do not do it. If the amount is large, pay by bank.
The bigger trap: the Rs 2 lakh cash limit is for the whole event
Section 186 of the Income-tax Act, 2025 (which replaces section 269ST of the old Act) says no person shall receive Rs 2 lakh or more otherwise than through an account payee cheque, account payee draft, bank electronic clearing or another prescribed electronic mode, where the money is:
- (a) in aggregate from a person in a day; or
- (b) in respect of a single transaction; or
- (c) in respect of transactions relating to one event or occasion from a person.
Under section 451, the penalty can be equal to the amount received in breach, and it is imposed on the receiver.
Clause (c) is the one written for situations like weddings. If one family pays one decorator a total of Rs 2.4 lakh in cash for the wedding, spread over three visits, the decorator has received Rs 2 lakh or more for one occasion from one person. The decorator is exposed to the penalty.
Why should the family care, when the penalty is on the vendor?
- Good vendors will refuse large cash payments, and you need to know that before the function morning.
- Vendors who agree to large cash often give weaker paperwork. If something goes wrong, a cash payment with a scribbled receipt is hard to prove.
- Your own accounts are easier to explain when large wedding payments sit in your bank statement with a matching invoice.
For how this same Rs 2 lakh rule applies to gifts and shagun received by the couple or parents, speak to your CA; this article is about paying vendors.
Which wedding vendors are likely covered
The rule names categories, not vendor types, so some cases are clear and some are grey.
| Vendor | Likely covered by | Notes |
|---|---|---|
| Hotel (rooms, banquets, food) | Row 15 | Named explicitly |
| Restaurant hosting a function | Row 15 | Named explicitly |
| Banquet hall, marriage hall, lawn with hall | Row 15 | "Banquet hall" is named; for open lawns or farmhouses, ask your CA |
| Convention centre | Row 15 | Named explicitly |
| Wedding planner, event management company | Row 15 | "Any person engaged in event management" |
| Caterer, decorator, tent house, DJ, band | Row 16 if over Rs 2 lakh per transaction | Row 15 may apply where they bill as event management |
| Jeweller, outfit designer | Row 16 if over Rs 2 lakh per transaction | Jewellery and high-value goods have their own common practice of asking for PAN |
| Photographer, makeup artist | Row 16 if over Rs 2 lakh per transaction | Most payments are below this, but packages can cross it |
Where a vendor sits in a grey area, the simplest path is the same: pay by bank, keep the invoice, and quote PAN if asked.
A payment plan for the 2026 season
Use this as a checklist when you sit down with your budget.
- List every vendor and the total due. Mark which are hotels, banquet halls, convention centres or planners (row 15) and which totals cross Rs 2 lakh.
- Decide the payment mode before negotiating. Tell vendors early: "We will pay advances and balances by bank transfer or UPI against invoices." It avoids awkward conversations on the wedding day.
- Get invoices or written receipts for every advance. If your caterer bills per plate, also agree in writing how late headcount changes are charged (see what to do when RSVPs change after the caterer count). The receipt should show the vendor name, function, date, amount, mode of payment and what is included.
- Keep PAN handy. The person paying (often a parent) should have a PAN copy ready for hotel and venue bookings.
- Plan the balance payments. Many vendors want the balance before or on the function day. Set up beneficiaries in your banking app a week in advance, and check daily transfer limits with your bank.
- Keep a small cash float only. Tips, flower stalls, last-minute supplies, drivers and helpers are what cash is good for.
- Track everything in one sheet. Vendor, total, advance, balance, mode, date, invoice saved (yes or no). The same sheet helps if a dispute arises or plans change.
If your wedding is being postponed or moved, your vendor contract's cancellation and refund terms matter more than the payment mode. Our guide to wedding invitation vendor terms covers the kinds of clauses worth reading before you pay.
What to ask your venue or planner
Copy and adapt these messages.
When booking:
Hi, we would like to confirm the booking for 25 November. Please share the invoice with your GST details and bank account for the advance. We will pay by bank transfer.
If a vendor asks for a large cash payment:
Thank you. For our records, we are paying all wedding vendors by bank transfer against invoices. Please share the invoice for the balance and we will transfer it today.
When a hotel or hall asks for PAN:
Sure, sharing the PAN of the person making the payment. Please mention it on the receipt.
Polite and early is the trick. Most professional vendors are used to these requests now.
Families with NRI relatives or no PAN
- Non-residents: Rule 159(6)(b) says the PAN-quoting requirement does not apply to non-residents for rows 1, 3, 15 and 16. An NRI relative paying a venue therefore does not need to quote PAN under row 15. The venue's section 186 limit on receiving cash still applies to the venue.
- No PAN: an individual without PAN can give Form No. 97 for these transactions. Many families simply let the member with a PAN make the big payments.
- Elderly parents: if a parent is paying from a pension account, consider transferring from their bank account directly rather than withdrawing cash. Large cash withdrawals in a year (Rs 10 lakh or more) are themselves a PAN-quoting transaction under rule 159.
Where invitations fit in
The money side of a wedding and the guest side are more connected than they look. A clear schedule, venue and function list on your invitation or wedding website makes vendor confirmations easier, because everyone is working from the same dates, times and addresses. A few couples even share the final event page link with their planner and venue so that changes reach everyone at once. LoveSolutions builds those guest-facing pages, but any single, updated source of truth helps.
Frequently asked questions
Is PAN mandatory for cash payment to a banquet hall in 2026? Yes, if the cash payment exceeds Rs 1 lakh against a bill or bills at any one time. This is row 15 of Rule 159 of the Income-tax Rules, 2026.
Does PAN need to be quoted if I pay the banquet hall by UPI or bank transfer? Row 15 is about cash payments. For other goods or services, row 16 requires PAN for transactions above Rs 2 lakh regardless of mode. Many hotels and venues also ask for PAN or ID as a matter of policy.
What if I do not have a PAN? An individual who does not have PAN can give a declaration in Form No. 97 for transactions in rows 11 to 16 of Rule 159.
Can a vendor accept Rs 3 lakh in cash for my wedding if I pay it over several days? Section 186 of the Income-tax Act, 2025 stops a person from receiving Rs 2 lakh or more in cash for transactions relating to one event or occasion from a person, even if spread over days. The penalty is on the receiver.
Does quoting PAN mean I will be taxed on my wedding expenses? No. Quoting PAN is a reporting requirement. It links the transaction to your PAN. Tax depends on your income, not on the fact of spending.
Is a wedding planner covered by this rule? Row 15 covers "any person engaged in event management". Most wedding planners fall within that description.
Were these rules the same last year? No. Until 31 March 2026, the old Rule 114B required PAN for cash payments exceeding Rs 50,000 to a hotel or restaurant. Rule 159 raised the limit to Rs 1 lakh and added convention centres, banquet halls and event managers.
Sources (read 29 October 2026)
- Income-tax Rules, 2026, rule 159 (table rows 15 and 16, sub-rules (2), (5) and (6)) and rule 160, as published by the Income Tax Department and reproduced on IndiaCode by eCourtsIndia.
- Income Tax Department, Rule 114B (old PAN-quoting list, hotel or restaurant cash above Rs 50,000).
- Income-tax Act, 2025, section 186 (mode of undertaking transactions) and section 451 (penalty).
Rules may change after publication. Check the current text on incometaxindia.gov.in or with a chartered accountant before large payments.