Download DOP No. FS-16/2/2024-FS-DOP dated 02/12/2025 - SB Order 16/2025 in PDF
To
All Head of Circles / Regions
Subject: Changes in accounting of POSB TDS transactions-Reg
SB Order No. 16/ 2025
Dak Bhavan, New Delhi – 110001
Dated 02.12.2025
Madam / Sir,
This has the reference to the SB Order No. 12/2025 dated 15.09.2025.
In continuation, it has been decided that the accounting of all the TDS deductions under Section 194A, 194H, 194EE and 194N of Income Tax Act being made from the POSB Account Holders and the Authorized Agents (MPKBY & SAS Agents) be performed at CPRC w.e.f. 01.12.2025. Accordingly, changes in reporting / accounting of transactions are implemented in Finacle.
Changes in Accounting for the following scenarios
| Sl. No. | Scenario | APT 2.0 / CSI-SAP Daily Account (w.e.f. 15.05.2025) | APT 2.0 Daily Account (w.e.f. 01.12.2025) |
|---|---|---|---|
| 1. | TDS Deductions | i. TDS deductions under Section 194N and TDS deductions on the periodically interest credits under Section 194A will be accounted at CPRC. ii. TDS deductions at the time of counter transaction will be accounted at the post office where the transaction is initiated. | All TDS deductions will be reported and accounted at CPRC. |
| 2. | Agent Commission including TDS | All the transactions will be accounted at the post office where the transactions are initiated. | All TDS deductions will be reported and accounted at CPRC. |
The TDS deductions at the time of counter transactions and the TDS deductions on Commission to Agents will be reversed automatically for accounting purpose, in the accounts of the post offices and the same will be accounted at CPRC w.e.f. 01.12.2025 adjusted through RSAO-POSB IT TDS. Accordingly, the accounting entries will be passed automatically in the DTRs of the post offices and CPRC.
Illustration
Say, an amount of ₹ 520/- is deducted towards TDS at the time of closure of a SCSS account and ₹ 400/- is deducted towards TDS for the commission paid to a MPKBY Agent in ‘X’ post office. The accounting entries in DTRs will appear as follows.
(a). In ‘X’ Post Office
| Description of Item | Receipt | Payment |
|---|---|---|
| IT TDS from Interest Payments under 194-A | 520/- | |
| Reversal of IT TDS from Interest Payments under 194-A | 520/- | |
| IT TDS from Commission, Brokerage under 194-H | 400/- | |
| Reversal of IT TDS from Commission, Brokerage under 194-H | 400/- | |
| RSAO-POSB IT TDS Receipts | 920/- |
(b). In CPRC
| Description of Item | Receipt | Payment |
|---|---|---|
| IT TDS from Interest Payments under 194-A | 520/- | |
| IT TDS from Commission, Brokerage under 194-H | 400/- | |
| RSAO-POSB IT TDS Payments | 920/- |
Filing of TDS returns
With the above revised approach in accounting of TDS w.e.f. 01.12.2025, the TDS returns may be filed as follows.
| S1. No. | TDS Item | Returns to be filed by |
|---|---|---|
| 1. | All POSB-TDS deductions under Section 194A, 194EE and 194N of IT Act, accounted up to 14.05.2025 | DDOs Concerned |
| 2. | TDS deductions under Section 194A and 194EE at the time of counter transaction and accounted at the post office where the transaction is initiated during the period from 15.05.2025 to 30.11.2025 | DDOs Concerned |
| 3. | All POSB-TDS deductions under Section 194H (TDS on Agents Commission) accounted from 01.04.2025 to 30.11.2025 | DDOs Concerned |
| 4. | TDS deductions under Section 194N and TDS deductions on the periodical interest credits under Section 194A accounted at CPRC during the period from 15.05.2025 to 30.11.2025 | CPRC |
| 5. | All POSB-TDS deductions under Section 194A, 194EE, 194H and 194N | CPRC from 01.12.2025 |
Accordingly, the burden of filing of TDS returns for TDS related to POSB operations to the DDOs will be reduced with respect to all the CBS TDS Components. However other matters not related to POSB viz. TDS deductions on vendor payments, payment of commission / incentive to PLI Agents etc. may continue to be handled as per the extant guidelines issued by, the concerned Division on the matter.
DDOs should ensure that-
(a). No transactions related to POSB including TDS are entered manually in accounting module of APT 2.0 or through voucher posting in CSI-SAP F & A module.
(b). TDS returns are not filed on the basis of the Finacle TDS reports.
(c). TDS returns are filed only for the amount which is reflected in the DTR/Cash Book/Cash Account and as specified in para 5 above.
(d). If the TDS returns were filed by the DDOs for the TDS amount accounted at CPRC, corrections in TDS returns may be filed immediately by the DDOs concerned.Postal Accounts Offices shall ensure that no amount is credited to any HO DDOs BIN for all CBS TDS deductions from 01.12.2025.
Since the TDS deductors are mandated to issue the Form-16A to the TDS deductees as per the Income Tax Rules, the Form-16A in respect of TDS returns filed by CPRC will be issued by CPRC. CPRC will send the Form-16A to the Head Post Offices through email and HPOs in turn will deliver the Form-16A to the TDS deductees concerned.
It is requested to circulate these instructions to all concerned viz., Post Offices, SBCOs, ICO (SB), NCDDOs attached to CDDOs, the existing Nodal Offices in the respective Circle, for information and necessary action.
This is issued with the approval of Competent Authority.
Yours faithfully
(Gourav Jain)
Assistant Director General (FS-II)
Copy to: -
- Sr. PPS to Secretary (Posts)
- PS to Director General Postal Services.
- PPS/ PS to Addl. DG (Co-ordination)/Member (Banking)/Member (O) / Member (P) / Member (Planning & HRD) / Member (PLI) / Member (Tech) / AS & FA
- Addl. Director General, APS, New Delhi
- Chief General Manager, BD Directorate / Parcel Directorate / PLI Directorate
- Sr. Deputy Director General (Vigilance & CVO) / Sr. Deputy Director General (PAF)
- Director, RAKNPA / GM, CEPT / Directors of all PTCs.
- Director General P & T (Audit), Civil Lines, New Delhi
- Secretary, Postal Services Board/ All Deputy Directors General
- All General Managers (Finance) / Directors Postal Accounts
- The Under Secretary, MOF (DEA), NS-II Section, North Block, New Delhi.
- The Joint Director & HOD, National Savings Institute, ICCW Building, 4 Deendayal Upadhyay Marg, New Delhi-110002.
- All recognized Federations / Unions / Associations
- Deputy Director (OL) for information and translation of the order in Hindi language.
- Guard File
(Gourav Jain)
Assistant Director General (FS-II)
TDS Accounting Changes
Implementation of centralized TDS accounting for POSB transactions at CPRC effective from 01.12.2025 as per SBC Order No. 16/2025
Key Changes
- Centralized accounting of all POSB TDS at CPRC from 01.12.2025
- Automatic reversal of TDS entries at post offices for accounting purposes
- Reduced TDS filing burden for DDOs for CBS TDS components
- Form-16A issuance responsibility shifts to CPRC
- No manual entry of POSB TDS transactions in APT 2.0 or CSI-SAP
DDO Responsibilities
- Ensure no manual entry of POSB TDS in accounting modules
- File TDS returns only for amounts reflected in DTR/Cash Book
- Do not file returns based on Finacle TDS reports
- Immediately correct returns if filed for CPRC-accounted TDS
- Continue handling non-POSB TDS as per existing guidelines
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