The government has made quoting the Permanent Account Number (PAN) compulsory for key post office transactions under the Income-tax Rules, 2026. Customers must now provide PAN details for deposits, withdrawals, account openings, and time deposits across post offices.
For those without PAN, a new Form 97 has been introduced. This form requires individuals to declare their name, address, transaction type, and amount, along with supporting documents. It replaces the earlier Form 60. Another new document, Form 98, has also been notified for specific compliance purposes.
In addition, Form 121 has replaced the old Forms 15G and 15H used for claiming exemption from tax deduction at source (TDS) on interest income. Individuals who expect their tax liability to be nil must now file Form 121 each year to avoid TDS. Post offices are required to maintain these records for seven years.
The changes apply under Rules 159, 160, 161, 211, and 237 of the Income-tax framework. Until systems are fully updated, the existing process for 15G and 15H will continue temporarily.
These reforms aim to bring greater transparency, strengthen compliance, and streamline tax procedures for depositors. Customers are advised to keep PAN details ready or file Form 97 to ensure smooth transactions. Senior citizens and small depositors must adapt to the new Form 121 for TDS exemption.
