The Department of Posts has implemented new regulations requiring depositors to quote their Permanent Account Number (PAN) for all specified financial activities under the Income Tax Rules, 2026. According to the Post Office SB Order No. 02/2026, depositors must mandatorily quote PAN in all specified transactions, with exceptions only for those who don't possess a PAN. In such cases, post offices must collect Form No. 97 from depositors, which captures complete details including name, address, transaction nature and amount, along with supporting documents. The government has now made it mandatory to quote PAN for various post office activities including time deposits, account openings, withdrawals, and deposits, governed by Rules 159, 160, 161, 211, and 237. As per recent updates, PAN is mandatory for almost all major post office financial transactions, making this one of the biggest compliance changes affecting savings schemes, deposits, and withdrawals at India Post.
The administration has introduced Form 121 to replace the long-standing Forms 15G and 15H for individuals seeking to avoid Tax Deducted at Source (TDS) on interest income from post office investments. This single document will be used by taxpayers whose estimated total income results in zero tax liability. Post offices will now verify Part A and complete Part B of Form 121, maintaining records for a seven-year period. The existing process for Forms 15G and 15H remains in effect until necessary digital system updates are fully implemented. Filing Form 121 is not universally mandatory; it is specifically designed for taxpayers whose estimated total income for a fiscal year results in zero tax liability.
PAN quoting is now compulsory for various post office activities including time deposits, account openings, withdrawals, and deposits, governed by Rules 159, 160, 161, 211, and 237. Customers without a PAN must file Form 97, detailing the transaction type and amount while attaching relevant identification documents. The regulatory framework has also replaced the old Form 60 with new Form 97/98 system for those without tax identification numbers, streamlining the compliance process. PAN is especially required for fixed deposits in post office schemes, large cash deposits or withdrawals, and other high-value financial transactions. To remain eligible for TDS exemption, a fresh declaration in Form 121 must be submitted separately for every new tax year.
The new regulations aim to streamline tax tracking for postal savings and investment activities while maintaining the existing process for Forms 15G and 15H until digital system updates are completed. The government has introduced Form 97 as a comprehensive alternative for those without PAN, ensuring all transactions are tracked and tax rules are followed. As part of the digital upgrade initiative, Delhi has received its Jan Seva Connect post office, transforming it into a one-stop shop for digital services including Aadhaar services and passport assistance, according to Chief Minister Rekha Gupta. The Department of Posts has revised rules so that investments in post office savings schemes are now tracked regularly, with data linked to Income Tax Department systems, bringing post office savings in line with modern banking and tax reporting systems.
