PAN now mandatory for these Post Office transactions
The Department of Posts has informed that from now onwards, in all specified transactions at post offices, a depositor must mandatorily quote their Permanent Account Number (PAN). In cases where a depositor does not possess a PAN, a post office must obtain Form No. 97 from them in accordance with the provisions of Income-tax Rules, 2026. Such a form must have complete details of the depositor’s name, address, the nature and amount of the transaction, along with supporting documents.
The revised post office transaction rules are part of Income-tax Rules, 2026, which came into force on April 1, 2026.
The new Income-tax Rules, 2026, brought several procedural changes that will directly impact how financial transactions are handled, including at post offices.
Forms 15G, 15H and Form 60 replaced
Now, a single Form 121 will be used in place of Forms 15G and 15H, which were submitted by individuals to avoid TDS on interest income.
Also, Forms 97 and 98 have replaced Form 60, which was used when an individual did not have PAN.
PAN mandatory for high-value transactions
Under specific provisions, including Rules 159, 160, 161, 211 and 237, quoting a PAN has now become mandatory for a range of transactions such as deposits, withdrawals, opening accounts and time deposits. If a customer does not have a PAN, they must submit Form 97 with complete details such as name, address, transaction nature and amount, along with supporting documents.
What does the Department of Posts order say about Post Office transactions?
According to the Post Office SB Order No. 02/ 2026, “In all specified transactions under the Income-tax Rules, 2026, the depositor shall mandatorily quote PAN. In cases where a depositor does not possess a PAN, Form No. 97 shall be obtained in accordance with the provisions of the Income-tax Rules, 2026, with complete details including name, address, nature and amount of the transaction, along with supporting documents.”
The order further said, “Post offices shall verify the identity, ensure that the form is duly filled and signed, and confirm that the relevant documents have been submitted by the depositor. Form No. 97 shall be retained by the Post Office for a period of six years from the end of the financial year in which the transaction was undertaken.”
Post offices have been instructed to strictly verify these details before accepting the form.
Deadlines set for filing transaction statements
For declarations received up to September 30, reporting must be completed by October 31 of the same year, as per the order For those received up to March 31, the deadline is April 30 of the following financial year. Missing these timelines could lead to compliance issues.
Form 121 introduced for TDS exemption claims
Instead of Forms 15G and 15H, customers will now need to submit Form 121. Post offices will collect and verify Part A of this form, complete Part B and maintain these records for seven years, reads the order Until system updates are implemented, the current process for handling Forms 15G and 15H will continue.
What is Form No. 121 and its purpose?
It is a declaration by a taxpayer to the effect that tax on their estimated total income for a tax year will be NIL, with a view to avoid deduction of tax at source. It is required to be submitted to the concerned payer. Based on such declaration, the payer will not deduct tax on income or credit due to the taxpayer.
Is filing of Form No. 121 mandatory?
No. It is meant to be used only by those taxpayers who do not want tax to be deducted at source, subject to meeting certain conditions as their tax on estimated total income for a Tax Year is likely to be NIL. Declaration in Form No. 121 needs to be filed for every Tax Year separately, as required.
The revised post office transaction rules are part of Income-tax Rules, 2026, which came into force on April 1, 2026.
The new Income-tax Rules, 2026, brought several procedural changes that will directly impact how financial transactions are handled, including at post offices.
Forms 15G, 15H and Form 60 replaced
Now, a single Form 121 will be used in place of Forms 15G and 15H, which were submitted by individuals to avoid TDS on interest income.
Also, Forms 97 and 98 have replaced Form 60, which was used when an individual did not have PAN.
PAN mandatory for high-value transactions
Under specific provisions, including Rules 159, 160, 161, 211 and 237, quoting a PAN has now become mandatory for a range of transactions such as deposits, withdrawals, opening accounts and time deposits. If a customer does not have a PAN, they must submit Form 97 with complete details such as name, address, transaction nature and amount, along with supporting documents.
What does the Department of Posts order say about Post Office transactions?
According to the Post Office SB Order No. 02/ 2026, “In all specified transactions under the Income-tax Rules, 2026, the depositor shall mandatorily quote PAN. In cases where a depositor does not possess a PAN, Form No. 97 shall be obtained in accordance with the provisions of the Income-tax Rules, 2026, with complete details including name, address, nature and amount of the transaction, along with supporting documents.”
The order further said, “Post offices shall verify the identity, ensure that the form is duly filled and signed, and confirm that the relevant documents have been submitted by the depositor. Form No. 97 shall be retained by the Post Office for a period of six years from the end of the financial year in which the transaction was undertaken.”
Post offices have been instructed to strictly verify these details before accepting the form.
Deadlines set for filing transaction statements
For declarations received up to September 30, reporting must be completed by October 31 of the same year, as per the order For those received up to March 31, the deadline is April 30 of the following financial year. Missing these timelines could lead to compliance issues.
Form 121 introduced for TDS exemption claims
What is Form No. 121 and its purpose?
It is a declaration by a taxpayer to the effect that tax on their estimated total income for a tax year will be NIL, with a view to avoid deduction of tax at source. It is required to be submitted to the concerned payer. Based on such declaration, the payer will not deduct tax on income or credit due to the taxpayer.
Is filing of Form No. 121 mandatory?
No. It is meant to be used only by those taxpayers who do not want tax to be deducted at source, subject to meeting certain conditions as their tax on estimated total income for a Tax Year is likely to be NIL. Declaration in Form No. 121 needs to be filed for every Tax Year separately, as required.
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