A PAN (Permanent Account Number) card is a crucial document for a wide range of financial and legal activities in India, including filing income tax returns, opening bank accounts, and making investments. While most people associate PAN cards with adults, minors can also hold a PAN card under the provisions of Section 160 of the Income Tax (I-T) Act. This Minor PAN Card, issued in the child’s name, is primarily intended to help parents or guardians manage financial activities on behalf of their child until they come of age.
If you are considering applying for a PAN card for your child, this comprehensive guide explains the step-by-step process and outlines the key benefits of having a Minor PAN Card.
Key Details About Minor PAN Cards
In India, there are no specific restrictions for minors to apply for a PAN card. However, once the child turns 18, they will be required to update the PAN card with a photo and signature. The card issued to a minor can only be used by the parent or legal guardian to carry out financial transactions, such as opening bank accounts, making investments, or being a nominee in financial instruments.
Also Read: PAN 2.0 Announced: Key Details, Benefits, and What You Need to Know About the Upgrade
Benefits of Having a Minor PAN Card
- Investment Opportunities: With a Minor PAN card, parents can invest in the child’s name. The PAN card is necessary for transactions such as opening a minor’s investment account or designating them as a nominee in investment instruments like mutual funds or fixed deposits.
- Bank Account Opening: A PAN card is also required to open a bank account in the name of the minor. This is beneficial for parents who want to start saving or investing for their child’s future at an early age.
- Taxation and Legal Compliance: Having a PAN card ensures that all financial dealings for your child comply with tax laws, even if the child is not yet earning an income. It’s also essential for future financial planning and legal activities.
How to Apply for a Minor PAN Card: A Step-by-Step Guide
- Visit the NSDL Website: Go to the official NSDL (National Securities Depository Limited) website. Look for the “Online PAN Application” section.
- Choose Application Type: Select “New PAN – Indian Citizen (Form 49A)” and opt for “Individual” under the category.
- Enter Personal Details: Fill out the form with necessary details such as the child’s full name, date of birth, and contact information. Be sure to provide accurate information.
- Complete Captcha Verification: Enter the CAPTCHA code provided on the website to verify your application.
- Receive Token Number: After submitting the details, a token number will be generated. Save this token number for future reference and proceed by clicking “Continue with PAN Application Form.”
- Choose Document Submission Method: Select “Forward application documents physically” for document submission, which means you will need to send the necessary documents by post.
- Fill Aadhaar Details: Enter the last four digits of your Aadhaar card for verification.
- Provide Additional Information: Provide details about the minor’s parent or guardian, as well as any income details if applicable. You may also need to submit documents like an Aadhaar card or ration card.
- Submit the Application: Complete the process by paying the application fee of Rs 107.
- PAN Card Issuance: Once your application is verified, the PAN card will be issued. The card can typically be downloaded online after about 15 days of application, while the physical card will be sent to your address.
Documents Required to Apply for a Minor PAN Card
To apply for a PAN card for a minor, the following documents are required:
- Aadhaar card (for parent or guardian)
- Ration card
- Post office passbook
- Domicile certificate
