📋 Changes in Accounting of POSB TDS Transactions (SB Order 16/2025)
Government of India – Department of Posts (Financial Services Division)
📌 Background
This order is issued by the Financial Services Division of the Department of Posts with reference to SB Order No. 12/2025 dated 15.09.2025. It introduces important changes in the accounting and reporting of POSB-related TDS transactions.
The changes primarily shift the accounting responsibility for specified TDS components to the Centralized Processing and Reporting Centre (CPRC) with effect from 01.12.2025. Additionally, system changes in Finacle have been implemented to support these modifications.
✅ Key Decision
All TDS deductions under Sections 194A, 194H, 194EE and 194N of the Income Tax Act relating to POSB account holders and authorised agents (MPKBY and SAS agents) are to be accounted at CPRC with effect from 01.12.2025.
Accordingly, the reporting and accounting of these transactions in Finacle and related accounting systems have been modified from this date onwards.
💰 Accounting Changes
🔄 Automatic Reversal at Post Offices
TDS deducted at the time of counter transactions and TDS on agents' commission will be automatically reversed in the accounts of the respective post offices for accounting purposes from 01.12.2025.
The same TDS amounts will then be accounted centrally at CPRC through "RSAO-POSB IT TDS" with suitable automatic entries in the Daily Transaction Reports (DTRs) of both post offices and CPRC.
📊 Scenario-wise Accounting
| Sl. No. | Scenario | Earlier Accounting (w.e.f. 15.05.2025) | Revised Accounting (w.e.f. 01.12.2025) |
|---|---|---|---|
| 1. | TDS Deductions | TDS under Section 194N and TDS on periodical interest credits under Section 194A were accounted at CPRC, while TDS at the time of counter transactions was accounted at the initiating post office. | All POSB TDS deductions will now be reported and accounted at CPRC, irrespective of where the transaction is initiated. |
| 2. | Agent Commission including TDS | All transactions, including TDS on agents' commission, were accounted at the post office where the transactions were initiated. | All TDS deductions on agents' commission will now be reported and accounted at CPRC. |
📈 Illustration of Entries
Illustratively, if ₹520 is deducted as TDS at the time of SCSS account closure and ₹400 is deducted as TDS on commission paid to an MPKBY agent in a particular post office, the total TDS of ₹920 will be reflected in RSAO-POSB IT TDS.
In the concerned post office DTR, IT TDS from interest payments and commission (Sections 194A and 194H) will be shown, while in CPRC DTR, corresponding TDS and reversal entries and RSAO-POSB IT TDS receipts/payments will appear as per the order.
📝 TDS Returns Filing
With the revised accounting from 01.12.2025, the responsibility for filing TDS returns relating to CBS-based POSB TDS components shifts predominantly to CPRC, thereby reducing the burden on DDOs. However, non-POSB TDS matters remain with respective DDOs as per existing guidelines.
| Sl. No. | TDS Item | Period / Coverage | Returns to be Filed by |
|---|---|---|---|
| 1. | All POSB TDS under Sections 194A, 194EE and 194N accounted up to 14.05.2025 | Up to 14.05.2025 (as per earlier accounting) | Concerned DDOs |
| 2. | TDS under Sections 194A and 194EE deducted at counter and accounted at post offices | 15.05.2025 to 30.11.2025 | Concerned DDOs |
| 3. | TDS under Section 194H (agents' commission) | 01.04.2025 to 30.11.2025 | Concerned DDOs |
| 4. | TDS under Section 194N and TDS on periodical interest credits under Section 194A accounted at CPRC | 15.05.2025 to 30.11.2025 | CPRC |
| 5. | All POSB TDS deductions under Sections 194A, 194EE, 194H and 194N | From 01.12.2025 onwards | CPRC |
Other TDS matters not related to POSB, such as vendor payments and PLI agents' commission or incentive, continue to be handled by the concerned divisions as per existing instructions.
⚡ Instructions to DDOs
- No POSB-related transactions, including TDS, should be entered manually in APT 2.0 accounting module or through voucher posting in CSI-SAP F&A module.
- TDS returns must not be based on Finacle TDS reports, but strictly on figures appearing in DTR/Cash Book/Cash Account as per the specified items in the order.
- If any DDO has already filed TDS returns for amounts accounted at CPRC, necessary correction returns must be filed immediately.
Postal Accounts Offices must also ensure that no amount is credited to any HO DDO's BIN for CBS TDS deductions from 01.12.2025 onwards.
📄 Form 16A Issuance
As TDS deductors are required to issue Form 16A, the Forms 16A corresponding to TDS returns filed by CPRC will be generated and issued by CPRC.
CPRC will send Form 16A to Head Post Offices through email, and HPOs will deliver them to the concerned TDS deductees.
Are you a Central Government Employee?
Don’t stay in the dark! Vital updates on Service Rules, Pension policies, and your career are happening right now.
Add as Preferred Source on Google
Follow us to ensure our latest exclusive reports appear first in your Google Search and Discover feed.
Comments
Post a Comment