Implementation of Income-tax Rules, 2026 – Summary

Issued by: Department of Posts (Financial Services Division), New Delhi

Effective from: 1 April 2026

Key Changes

Forms Updated:

• Form 15G & 15H → Form No.121
• Form 60 → Form No.97 & 98
• Rules Referenced: 159, 160, 161, 211, and 237
• Purpose: Strengthen reporting and compliance for post office transactions.

Main Instructions for Post Offices

• PAN Requirement: Mandatory for all transactions; if unavailable, collect Form No.97 and retain for six years.
• System Update: Continue using existing Finacle process until new functionality is added.
• Form No.98 Submission: Send verified forms to Head Post Office for reporting to Income-tax Department.
• Error Handling: Non-matching transactions to be listed in Forms 48 & 59; high-risk cases to be reported separately.
• Timelines for Filing Form No.98
• Up to 30 September → File by 31 October
• Up to 31 March → File by 31 May (next year)

Compliance & Penalties

• Non-compliance may attract penalties under the Income-tax Act.
• Director, CPRC, Chennai responsible for timely reporting of SFT (Form No.165) and TDS returns.