New rules of post office
The government has tightened the rules in post office saving schemes under Income-tax Rules, 2026. Now it will be necessary to provide PAN for many purposes like opening an account, depositing money, making withdrawals and investing in time deposits. This change has been made with the aim of linking small savings instruments with the tax system and keeping an eye on large transactions.
Under which rules the change was implemented
New provisions have been implemented under Rules 159, 160, 161, 211 and 237. This means that this is not just a small change, but a big effort to increase transparency in the entire financial system. Now most of the transactions taking place in the post office will become part of the tax records.
What to do if you do not have PAN?
Arrangements have also been made for those who do not have PAN. Such people will now have to fill Form 97, which will replace the earlier Form 60. In this, identity, address, transaction information and necessary documents will have to be given. With this, transactions without PAN can also be tracked.
New Form 121 for TDS
The government has implemented a new Form 121 by merging Form 15G and 15H. Now people of all ages will be able to claim exemption from TDS through this single form, provided the tax liability on their total income is zero. This form will have to be submitted every financial year and the post office will scrutinize it.
Strict record keeping rules
Under the new rules, the post office will have to keep all documents and declarations safe for at least 7 years. This will make tax investigation easier if needed and the system will become more transparent.
There will be some relief for now
Although these rules have come into effect, the post office will temporarily accept the old Form 15G and 15H until the system is upgraded. This will give customers time to adapt to the new system.
What is important for investors
Now account holders will have to keep their PAN updated. If you do not have PAN, be prepared for Form 97. Also, it is important to understand the new rules of Form 121 for exemption related to TDS. Overall, the objective of the Post Office Rules 2026 is to prevent tax evasion, increase transparency and connect small investors with the formal financial system.
