SB Order 16/2025 – Complete Guide to New POSB TDS Accounting Rules Effective 01.12.2025
The Department of Posts has released SB Order 16/2025, introducing major changes in the way TDS is accounted for under POSB operations. These changes, effective from 1 December 2025, aim to streamline TDS reporting, bring uniformity, and reduce the workload of DDOs across the postal network.
This order follows the earlier SBC Order No. 12/2025 dated 15.09.2025, and brings significant clarity for Post Offices, CPRCs, SBCOs, and DDOs handling POSB financial operations.
1. What SB Order 16/2025 Means
Under the new system, all TDS deductions under Sections 194A, 194H, 194EE, and 194N for POSB account holders and authorized agents will now be accounted at the Central Processing & Reporting Centre (CPRC) instead of individual post offices.
This ensures:
- Centralized monitoring
- Accurate reporting
- Better compliance with Income Tax rules
Finacle has already been updated to support these new workflows from 01.12.2025.
2. Key Change: All TDS to Be Accounted at CPRC
Earlier, some TDS components were accounted at post offices (especially counter transactions). From 1 December 2025, every TDS deduction—without exception—is reported and accounted at CPRC.
Comparison of Old vs New Accounting System
| Scenario | Accounting up to 30.11.2025 | Accounting from 01.12.2025 |
|---|---|---|
| TDS Deductions | Mixed accounting (CPRC + Post Office) | All TDS at CPRC |
| Agent Commission TDS | Accounted at Post Office | All TDS at CPRC |
| Reversal Entries | Not system-based | Auto-reversed and posted in DTR |
This simplifies bookkeeping and avoids inconsistency in TDS reporting across the country.
3. Automatic Reversal of TDS at Post Offices
From 01.12.2025, if TDS is deducted at a post office counter (for example, upon closure of a scheme), the system will:
- Deduct TDS at the customer/agent level
- Automatically reverse the same entry in the post office DTR
- Re-account it at the CPRC through RSAO-POSB IT TDS
Illustration
Suppose in Post Office ‘X’:
- ₹520 TDS is deducted under Section 194A
- ₹400 TDS is deducted under Section 194H (Agent Commission)
The system will automatically create these entries:
In ‘X’ Post Office DTR
| Item Description | Receipt | Payment |
|---|---|---|
| TDS under 194A | 520 | – |
| Reversal of 194A TDS | – | 520 |
| TDS under 194H | 400 | – |
| Reversal of 194H TDS | – | 400 |
| RSAO–POSB IT TDS Receipts | 920 | – |
In CPRC DTR
| Item Description | Receipt | Payment |
|---|---|---|
| TDS under 194A | 520 | – |
| TDS under 194H | 400 | – |
| RSAO–POSB IT TDS Payments | – | 920 |
This fully shifts the accounting responsibility from the Post Office to CPRC.
4. Revised TDS Return Filing Responsibilities
With centralized accounting, filing of TDS returns will also change.
Who Will File TDS Returns Now?
| Period & TDS Type | To Be Filed By |
|---|---|
| TDS under 194A, 194EE, 194N up to 14.05.2025 | Concerned DDOs |
| Counter TDS under 194A & 194EE from 15.05.2025 to 30.11.2025 | Concerned DDOs |
| TDS under 194H (Agent Commission) from 01.04.2025 to 30.11.2025 | Concerned DDOs |
| TDS under 194N & periodical 194A credited at CPRC up to 30.11.2025 | CPRC |
| All POSB TDS under 194A, 194EE, 194H, 194N from 01.12.2025 | CPRC |
This change greatly reduces the compliance burden on DDOs.
5. Important Instructions for DDOs
DDOs must strictly ensure:
- No manual POSB or TDS entries are made in APT 2.0 or CSI-SAP F&A.
- TDS returns must not be filed using Finacle TDS reports.
- Returns should match only with DTR / Cash Book / Cash Account figures.
- If any TDS already filed pertains to CPRC, corrections must be submitted immediately.
- No CBS TDS should be credited to any HO DDO BIN after 01.12.2025.
6. Issuing of Form-16A
Since CPRC will file TDS returns from 01.12.2025, the Form-16A for these entries will also be issued by CPRC.
Process:
- CPRC prepares Form-16A
- Sends it via email to Head Post Offices
- HPOs deliver it to the concerned deductees
7. Implementation and Circulation
All Circles must circulate these instructions to:
- Post Offices
- SBCOs
- ICO (SB)
- NCDDOs under CDDOs
- Nodal Offices
This ensures smooth transition and uniform implementation across India Post.