PAN & Financial Reporting Rules for Post Office Transactions – SB Order No.1/2017

Income Tax Compliance for POSB Transactions: PAN Verification, Form 60/61/61A Submission – SB Order No.1/2017

SB Order No.1/2017

Subject: Quoting of PAN/Details of Form 60 and submission of Financial Transaction Reports in Form -61 and 61A for certain POSB transactions.

Key Points:

• Income Tax Rule 114B: Requires quoting PAN for specified transactions in Post Offices, including cash deposits exceeding ₹50,000 in a day or aggregating over ₹2.5 lakh (09 Nov 2016–30 Dec 2016). For fixed deposits, deposits exceeding ₹50,000 or aggregating over ₹5 lakh annually must be reported. Form 60 is required if PAN is unavailable.
• Income Tax Rule 114C: Mandates verification of PAN details by postal staff. Discrepancies in CIF data must be corrected, and Form 60 collected if PAN is absent.
• Income Tax Rule 114D: Requires submission of Form 61 reports to the Director of Income Tax (Intelligence & Criminal Investigation) for transactions involving Form 60. Deadlines: 31 Oct (for forms received by 30 Sep) and 30 Apr (for forms received by 31 Mar).
• Income Tax Rule 114E: Post Offices must furnish annual statements (Form 61A) for transactions like cash deposits over ₹10 lakh in savings accounts or fixed deposits, and specific deposits during 09 Nov–30 Dec 2016 (₹2.5 lakh+).

Implementation:

• Form 60 details are to be manually recorded until Finacle CBS supports digital entry.
• Form 61/61A templates are available on incometaxindiaefiling.gov.in under "Forms (other than ITR)."
• Heads of Circles/Regions must ensure compliance and issue instructions to all Post Offices.

Note: This order supersedes the memo dated 13.02.2017.

Collection of SB Order 2017

Download SB Order 01/2017 from Google Drive - Alternate Server