The Department of Posts, Ministry of Communications, has issued SB Order No. 02/2026 dated April 27, 2026 regarding implementation of the revised compliance and reporting framework under the newly notified Income-tax Rules, 2026. The new rules, notified by the Central Board of Direct Taxes (CBDT) under G.S.R. 198(E) dated 20 March 2026, came into effect from 1 April 2026.
As per the revised provisions, existing Forms 15G and 15H have been consolidated into a single declaration Form No.121, while Form 60 has been replaced by Form No.97 and Form No.98 for specified financial transactions conducted through Post Offices.
PAN Mandatory for Specified Transactions
The Department has directed that PAN shall be mandatory for all specified transactions under the Income-tax Rules, 2026, including deposits, withdrawals, opening of accounts, and Time Deposit transactions. In cases where a depositor does not possess PAN, Post Offices shall obtain Form No.97 along with prescribed supporting documents and verification details.
Post Offices have also been instructed to preserve Form No.97 records for six years from the end of the relevant financial year. Until necessary modifications are incorporated in the Finacle system, the existing Form 60 functionality shall continue to be used operationally.
Timely Reporting Through Form No.98
The revised framework mandates submission of verified Form No.98 to the Income Tax Department within prescribed timelines through the Head Post Offices. Declarations received up to 30 September must be reported by 31 October of the same year, while declarations received up to 31 March are required to be reported by 30 April of the following financial year.
The Department emphasized that designated Drawing and Disbursing Officers (DDOs) must ensure strict compliance with these reporting timelines to avoid penalties under the Income-tax Act.
New Form No.121 for Non-Deduction of Tax on Interest Income
Under the revised provisions, customers seeking non-deduction of tax on interest income will now submit Form No.121 instead of Forms 15G and 15H. Post Offices will collect and verify Part A and Part B of the form and preserve such records for seven years from the end of the relevant tax year.
Until Finacle system enhancements are completed, the existing operational procedure applicable for Forms 15G and 15H shall continue for acceptance and processing of Form No.121.
Unique Identification Number (UIN) System Introduced
The Department has further instructed all Head Postmasters (DDOs) to manually allot a 26-character Unique Identification Number (UIN) to every Form No.121 declaration received during each quarter of the financial year until automated functionality is developed in Finacle. A manual register is to be maintained for this purpose as per CBDT-prescribed procedures and standards.
Quarterly TDS and SFT Reporting Strengthened
The revised order also directs that quarterly TDS statements for non-tax deduction cases under Form No.121 must be filed by the 7th day of the month following the respective quarter. In addition, the Director, CPRC Chennai, has been entrusted with ensuring submission of Statement of Financial Transactions (SFT) in Form No.165 and related TDS returns within stipulated timelines.
Strict Compliance Advised Across Post Offices
The Department has instructed all Circles, Regions, and Post Offices to circulate these guidelines widely among officials and display the instructions prominently in public areas of Post Offices for customer awareness and compliance. The order has been issued with the approval of the Competent Authority.
The SB Order can be accessed at: https://www.staffnews.in/wp-content/uploads/2026/05/SB-Order-02-2026.pdf
