The Department of Posts issued instructions to implement the Income-tax Rules, 2026, effective from 1 April 2026, introducing a revised compliance and reporting framework for post office transactions. The new rules replace Forms 15G/15H with Form 121 and Form 60 with Forms 97 and 98, mandating PAN quoting or submission of Form 97 for specified transactions. Post offices must verify, retain, and report such declarations within prescribed timelines through Form 98 and Statement of Financial Transactions. Interim arrangements allow continued use of existing Finacle functionalities until system updates are completed. Form 121 declarations for non-deduction of tax require verification, retention, and quarterly reporting, along with manual generation of Unique Identification Numbers. Strict timelines are prescribed for filings, and authorities must ensure compliance to avoid penalties. The circular emphasizes documentation, reporting discipline, and procedural adherence across all post offices under the updated income-tax regulatory framework.
F. No 113-03/2026
Government of India
Ministry of Communications
Department of Posts
(Financial Services Division)
Dak Bhawan, New Delhi — 110001
SB Order No. 02/ 2026 | Dated: 27.04.2026
To
All Head of Circles/Regions
Subject: Implementation of Income-tax Rules, 2026 — Revised Reporting and Compliance Framework for Post Office Transactions — Reg.
Madam / Sir,
The Central Board of Direct Taxes under the Department of Revenue, Ministry of Finance has notified the Income-tax Rules, 2026 vide G.S.R. 198(E) dated 20.03.2026, which have come into effect from 01.04.2026. Under these revised rules, erstwhile Forms 15G and 15H have been consolidated and replaced by a single declaration Form No.121, and Form 60 has been replaced with Form No.97 & 98.
2. Attention is also invited to the Rules 159, 160, 161, 211, and 237 of Income-tax Rules, 2026, which lay down compliance requirements in respect of specified high-value transactions such as deposits, withdrawals, account opening, and Time Deposit transactions, mandating the collection of PAN or submission of Form No.97, as applicable, along with filing of Form No.98 and reporting of such transactions through the Statement of Financial Transactions (SFT) within the prescribed timelines.
3. In accordance with the above, following instructions shall be followed by all Post Offices:
I. In all specified transactions given under Income-Tax Rules, 2026, 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 under the Income-tax Rules, 2026 with complete details including name, address, nature and amount of transaction, and the documents etc. Post Offices shall verify the identity, ensure that the form is duly filled and signed, 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. [Please refer Rule 159 &160 of Income Tax rules, 2026]
II. Till the requisite changes are made in the Finacle for incorporating the provision related to Form No.97, the existing functionality and procedure available in Finacle for Form No.60, shall be used for accepting the request of depositors.
III. Duly filled and verified Form No.98 shall be sent to Head Post Office concerned and the Head Postmaster (DDO) shall report the details to the Income-tax Department through Form No.98 within prescribed timelines. [Please refer Rule 160 of Income Tax rules, 2026]
Note: Documents which can be produced in support of identity, address and date of birth are required to be submitted by depositor as prescribed in part E of Form No.97. However, such documents are not required, if depositor has applied for PAN, and item 4 in Part C of Form No.97 is filled.
IV. Timelines for filing Form No.98 [Please refer Rule 160 (3) of Income Tax rules, 2026]
a. Where declarations are received up to 30th September, the statement shall be furnished by 31st October of the same year.
b. Where declarations are received up to 31st March, the statement shall be furnished by 30th April of the immediately following financial year.
The concerned DDO should ensure that the detailed statement (Form No.98) related to Form No.97 is reported to Income Tax Department as per the time schedule given in the Income Tax Rule, 2026 without fail.
V. Further, Form No.121 shall be obtained from customers seeking non-deduction of tax on interest income, in place of Forms 15G and 15H. The Post Office shall collect the duly filled Part A of Form No.121, signed by the depositor, shall complete and verify the details in Part B of the said form. All such records shall be preserved for a period of seven years from the end of the tax year in which the declaration is received. [Please refer Rule 211 of Income Tax rules, 2026]
VI. Till the requisite changes for incorporating the provision related to Form No.121 are
made in Finacle, existing functionality and procedure applicable to Form No. 15G/15H shall be followed for accepting request of depositors. Duly filled and verified Part B of Form No.121 shall be sent to Head Office concerned for further necessary action.
VII. Head Postmaster (DDOs) shall manually allot a 26-character Unique Identification Number (UIN) to each declaration received from the depositor in Form No.121, during every quarter of the financial year in accordance with the procedures, formats and standards specified by the Director General of Income tax (Systems), till such provision is developed in Finacle. The Procedure, formats and standards for generation and allotment of Unique Identification Number (UIN) in respect of Form No. 121 and its Part B thereof are given in the CBDT letter No. CB/657/2026-ITO (SYSTEMS) (CPC-TDS)-2DEL dated 28th March 2026, which is attached herewith for reference. Therefore, a manual register may be prepared for this purpose and UIN should be serially numbered as prescribed. [FAQ on Form No.121 is enclosed]
VIII. In respect of Form No.121, the DDO concern should ensure, that a TDS statement for non-tax deduction cases is filed quarterly by 7th of the month following the quarter in accordance with the Rule 219 of Income Tax Rules 2026. [Please refer Rule 211 of Income Tax rules, 2026]
IX. In addition, as per Rule 237 of the Income-tax Rules, 2026, the Director, CPRC, Chennai, shall ensure reporting of the Statement of Financial Transactions (SFT) in Form No. 165, and submission of other TDS returns within the prescribed timelines under the Income-tax Rules, 2026.
Non-compliance with the provision of new Income Tax Act may attract penalties under the relevant provisions of the act.
4. A copy of the Income Tax Rules, 2026, relevant forms, FAQ and CBDT notification is enclosed herewith for quick reference
5. It is requested to circulate these instructions to all concerned for information and necessary compliance. The same may also be displayed on the notice board of all Post Offices in public areas.
6. This issues with the approval of the Competent Authority.
Yours faithfully
(DevendKumar Sharma)
Assistant Director (SB-II)
Copy to: –
1. Sr. PPS to Secretary (Posts).
2. Sr. PPS to Director General Postal Services.
3. PPS/PS to Member (Financial Services)/Member (0)/Member (P)/Member (HRD)/ Member (Tech)/ Member (Service Quality and Marketing)/Member (Infrastructure), JS & FA.
4. Director General, APS, New Delhi.
5. Chief General Manager, BD Directorate / Parcel Directorate / PLI Directorate.
6. CGM, CEPT for kind information and uploading on India Post website.
7. Sr.Deputy Director General (Vig) & CVO) / Sr. Deputy Director General (PAF).
8. Director, RAKNPA / Directors of all PTCs.
9. Director CPRC, Chennai.
10. Director General P & T (Audit), Civil Lines, New Delhi.
11. Secretary, Postal Services Board / All Deputy Directors General.
12. All General Managers (Finance) / Directors Postal Accounts / DDAP.
13. The Joint Director & HOD, National Savings Institute, ICCW Building, 4 Deendayal Upadhyay Marg, New Delhi-110002.
14. The Under Secretary, MOF (DEA), NS-II Section, North Block, New Delhi.
15. All recognized Federations / Unions / Associations.
16. Guard File/e-File.
(Devender Kumar Sharma)
Assistant Director (SB-II)
