Post office savings rules revised: PAN made mandatory for deposits, withdrawals — new regulations explained

The government has updated postal regulations, mandating the Permanent Account Number (PAN) for critical transactions under the Income Tax Rules, 2026. This change aims to streamline tax tracking for postal savings and investment activities.

New PAN mandates and alternative forms

The Department of Posts now requires depositors to quote their PAN for all specified financial activities. According to the 2026 rules, post offices must collect Form No. 97 from any depositor who doesn't have a PAN. This new document captures the individual's name, address, transaction amount, and necessary supporting evidence to ensure compliance.

Simplified TDS Exemption with Form 121

The administration has also introduced Form 121 to replace the long-standing Forms 15G and 15H. This single document will now be used by individuals seeking to avoid Tax Deducted at Source (TDS) on interest income derived from post office investments. Additionally, the regulatory framework has replaced the old Form 60 with new Forms 97 and 98 for those without tax identification numbers.

Requirements for High-Value Transactions

Quoting a PAN 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.

Implementation of TDS claims

The transition to Form 121 means post offices will now verify Part A and complete Part B of the document, maintaining records for a seven-year period. However, the existing process for Forms 15G and 15H remains in effect until the necessary digital system updates are fully implemented.

Mandatory Filing Status

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. To remain eligible for the TDS exemption, a fresh declaration in Form 121 must be submitted separately for every new tax year.

What does the Department of Posts order say?

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.”

Upgraded ‘Jan Seva Connect’ post office unveiled in Delhi

Delhi Chief Minister Rekha Gupta joined Union Communications Minister Jyotiraditya Scindia on Thursday to inaugurate the redeveloped 'Jan Seva Connect' post office in Nehru Place. Minister of State for Communications Chandra Sekhar Pemmasani also attended the high-profile event.

Gupta expressed pride that the national capital was chosen to launch this nationwide modernization campaign. She commended the Centre's ambitious plan to renovate 25,000 post offices, calling it a testament to far-sighted strategic planning. Under Prime Minister Narendra Modi’s guidance, these facilities have transitioned into multi-purpose hubs where citizens can access passport assistance, Aadhaar services, and various digital tools, she said.

The Chief Minister highlighted that the 'Jan Seva Connect' concept perfectly reflects the Prime Minister’s broader vision for citizen-centric governance. By integrating modern technology with traditional reach, these renovated spaces are designed to serve as efficient public service centres, ensuring that essential government facilities remain accessible and streamlined for the residents of the national capital.