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People using post office savings schemes, fixed deposits, and other financial services across India will now have to follow stricter tax compliance procedures after the implementation of the new Income Tax Rules, 2026.

Starting April 1, 2026, the Department of Posts has rolled out revised regulations covering PAN submission, TDS exemption declarations, financial reporting, and documentation requirements for several post office transactions.

The updated rules are aimed at increasing transparency in high-value financial activities and strengthening tax monitoring systems.

PAN Becomes Compulsory for Key Post Office Transactions

Under the revised framework, customers must now provide their Permanent Account Number (PAN) for multiple financial activities carried out at post offices.

The requirement applies to transactions such as:

• Opening and operating certain financial accounts
• Investments in small savings schemes
• Cash deposits exceeding ₹10 lakh during a financial year
• Cash withdrawals above ₹10 lakh in a financial year
• Time deposits above ₹50,000 in a single transaction
• Aggregate time deposits crossing ₹5 lakh annually

Officials clarified that these limits will be calculated collectively across one or multiple accounts linked to a customer.

Tax experts say the move is intended to improve monitoring of large financial transactions and reduce the risk of unreported income.

Form 97 Introduced for Customers Without PAN

Individuals who do not possess a PAN card will now need to submit the newly introduced Form 97 to complete eligible transactions.

The government has replaced the earlier Form 60 system with this updated declaration format.

Form 97 requires detailed information, including:

• Aadhaar details
• Residential and office address
• Mobile number and email ID
• Nature of the financial transaction
• Identity and address proof
• Date of birth
• Personal declaration and verification

Authorities have warned that transactions falling under the prescribed limits may not be processed if neither PAN nor Form 97 is submitted.

Form 15G and 15H Discontinued, New Form 121 Introduced

Another major change under the Income Tax Rules, 2026 is the introduction of Form 121.

This single declaration form has replaced both Form 15G and Form 15H, which were previously used for claiming exemption from Tax Deducted at Source (TDS).

Form 121 can now be submitted for income categories such as:

• Interest income on deposits
• Pension receipts
• Provident fund withdrawals
• Insurance commission earnings
• Rental income

The new system aims to simplify the declaration process by using one common form for different categories of taxpayers.

Who Is Eligible to Submit Form 121?

Resident individuals, Hindu Undivided Families (HUFs), and certain eligible entities can file Form 121 if their estimated total taxable income for the financial year is expected to be nil.

One important change is that senior citizens and taxpayers below 60 years of age will now use the same form.

Earlier, separate forms existed:

• Form 15G for non-senior citizens
• Form 15H for senior citizens

The government believes a unified declaration format will streamline tax compliance procedures.

When Should Customers Submit Form 121?

Tax professionals recommend filing Form 121 either:

• At the beginning of the financial year, or
• Before receiving the first eligible payment

The declaration can be submitted:

• Through online channels
• Physically at post office branches

If a person receives income from multiple institutions or payers, separate declarations must be submitted to each one individually.

Post Offices Face Stricter Compliance Responsibilities

The revised tax rules also place significant compliance obligations on post office branches.

New Rules for Form 97

Post offices must now:

• Verify customer identity carefully
• Ensure all information is properly filled
• Preserve Form 97 records for six years from the end of the financial year
• Share required details with the Income Tax Department

New Rules for Form 121

For Form 121 declarations, post offices must:

• Preserve records for seven years
• Assign a unique 26-character identification number to every declaration
• File quarterly TDS reporting statements for non-deduction cases

Quarterly Reporting Timeline Introduced

The government has also implemented stricter reporting deadlines.

Post offices will now be required to file quarterly TDS-related statements by the 7th day of the month following the end of each quarter.

Experts say this step is aimed at improving real-time tax reporting and financial transparency.

Customers Advised to Keep Documents Updated

Financial advisors are urging post office customers to stay prepared by:

• Updating PAN information
• Keeping Aadhaar details accurate
• Filing Form 97 if PAN is unavailable
• Submitting Form 121 wherever applicable
• Maintaining proper financial records and supporting documents

Failure to comply with the revised requirements could result in delays, rejection of transactions, or additional scrutiny from tax authorities.

Government Tightening Oversight of Financial Transactions

Experts believe the new Income Tax Rules, 2026 signal a broader effort by authorities to strengthen oversight of high-value financial activities and improve tax compliance across savings and investment channels.

For millions of Indians relying on post office schemes for savings and fixed-income investments, understanding these updated rules has now become essential.

As documentation and reporting standards become stricter, taxpayers may need to pay closer attention to financial declarations and tax-related paperwork to ensure smooth and uninterrupted transactions in the future.