A Permanent Account Number (PAN) card is no longer just a tool for adults; it plays an important role for minors too. Whether for opening a bank account, investing in a child’s name, or meeting tax requirements, a PAN card simplifies financial processes and ensures compliance with regulations.
It also lays the groundwork for a child’s financial future. Obtaining a PAN card early can streamline transactions, facilitate scholarship access, and enable investments.
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The Income Tax Department allows minors to hold a PAN card, as per Section 160 of the Income Tax Act. While children’s earnings are often clubbed with a parent’s income for tax purposes, certain situations make having a PAN essential:
Investments: Listing a child as a nominee for mutual funds, stocks, or other instruments requires a PAN.
Independent earnings: Income earned by minors through acting, sports, or business mandates a PAN for tax management.
Scholarships: Many scholarship initiatives and programs require the beneficiary to have a PAN card.
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REQUIRED DOCUMENTS FOR A MINOR’S PAN CARD
To apply for a PAN card for your child who is less than 18 years of age, the following documents are necessary:
Address and identity proof of the minor’s parents
Address and identity proof of the minor applicant
Guardian’s ID Proof like an Aadhaar card, ration card, passport, driving licence, or voter ID can be submitted.
Ensure all documents are valid and match the information provided in the application.
HOW TO APPLY FOR A MINOR’S PAN CARD
Follow these steps to apply:
Visit the NSDL (National Securities Depositories Ltd) Portal
Choose New PAN – Indian Citizen (Form 49A) and select the category – Individual
Provide the minor’s full name, date of birth (DOB), mobile number, and email ID in the application form
Enter CAPTCHA and click Submit
Make a note of it and click ‘Proceed with PAN application form’
Select document submission mode and link Aadhaar details
Attach supporting documents
Pay the applicable fee online
After submission and verification, the PAN card is issued within 15 days. The e-PAN can also be downloaded online.
Securing a PAN for your child early ensures hassle-free management of finances and better preparation for future responsibilities. It’s a vital step in aligning financial and regulatory requirements while unlocking various opportunities for the minor.
