Post Office Transaction Rules Revised: PAN, TDS and Reporting Changes You Should Know

The changes affect PAN submission, declarations for avoiding TDS, and stricter record-keeping requirements. Here’s a simple breakdown of what customers need to know.

PAN Now Mandatory for Many Post Office Transactions

Post office customers must quote their Permanent Account Number (PAN) for several specified financial transactions.

These include:

• Opening and operating accounts
• Investing in small savings schemes
• Cash deposits of Rs 10 lakh or more in a financial year
• Cash withdrawals of Rs 10 lakh or more in a financial year
• Time deposits above Rs 50,000, or exceeding Rs 5 lakh in a financial year

This rule applies when the total amount across one or more accounts crosses the prescribed limits.

No PAN? Submit Form 97

Customers who do not have a PAN can still complete these transactions by filing Form 97.

Form 97 replaces the old Form 60 and requires detailed information such as:

• Nature of the transaction
• Personal declaration
• Name, date of birth and Aadhaar number
• Residential and office address
• Mobile number and email ID
• Details of the transaction
• Identity, address and date of birth proofs
• Verification with signature

Without PAN or Form 97, high-value transactions may not be processed.

Form 121 Replaces Form 15G and Form 15H

Those who want to receive certain incomes without TDS deduction must now submit Form 121.

This new common form replaces both Form 15G and Form 15H.

It can be used for income such as:

• Interest on deposits
• Pension payments
• Provident fund withdrawals
• Insurance commission
• Rent

Who Can Submit Form 121?

Resident individuals, HUFs and eligible entities can submit Form 121 if their estimated total income for the financial year is expected to be nil.

A major change is that both taxpayers below 60 years and senior citizens above 60 years will use the same form.

When and How to Submit Form 121

Form 121 should be submitted:

• At the beginning of the financial year, or
• Before the first payment is made

It can be filed online or in physical form.

If income is received from multiple payers, a separate Form 121 must be submitted to each payer.

Post Offices Must Preserve Records

The new rules also place compliance responsibilities on post offices.

Form 97 Retention Rules

• Post offices must verify identity and ensure the form is complete.
• The form must be preserved for six years from the end of the financial year.
• Details must be reported to the Income Tax Department.

Form 121 Retention Rules

• The form must be kept for seven years from the end of the relevant tax year.
• Each declaration will receive a 26-character unique identification number.
• Post offices must file quarterly TDS statements for cases where tax was not deducted.

Quarterly Reporting Deadline

The required TDS statement for non-deduction cases must be filed by the 7th day of the month following the end of each quarter.

What Post Office Customers Should Do

To avoid delays or rejection of transactions, customers should:

• Keep PAN details updated
• Submit Form 97 if PAN is not available
• File Form 121 if eligible to avoid TDS
• Ensure all declarations are accurate and complete

The new Income Tax Rules, 2026 have brought tighter compliance requirements for post office transactions. Whether you are depositing large sums, opening accounts or seeking TDS exemption, the right documents are now essential.

Keeping your PAN and tax declarations ready will help ensure smooth and hassle-free transactions at the post office.