PAN Cards and Aadhar Cards have become the go-to documents for KYC today for us Indians and are also mandatory to access financial services like getting a loan, investing, etc. While minor Aadhar cards are quite common and many parents have got them done for their kids, many are not aware that they can also get PAN cards for their minors. Here are details on why minors need PAN cards and how could they get the same issued?.
Are PAN cards for minors valid?
PAN (Permanent Account Number) is a 10-digit alphanumeric code that serves as a unique identifier for Indian taxpayers. It is issued by the Indian Income Tax Department and is required for various financial transactions, such as filing income tax returns, opening a bank account, investing in securities, and so on.
PAN cards are generally issued to individuals who are 18 years or older. However, minors can also apply for a PAN card, and they will be issued a PAN card with a “minor” status mentioned on it. While the PAN card issued to a minor is valid, it is important to note that the minor cannot use the PAN card for financial transactions until they turn 18 years old. Once they reach 18 years old, they can apply for a new PAN card with the “minor” status removed.
What are the benefits of getting PAN cards for minors?
While there is a lot of awareness regarding the benefits of PAN cards for adults, the benefits of PAN cards for minors are often missed out on. Here are some of them.
- As per the provisions of the Income Tax Act 1961, minors are not required to obtain a PAN card for their income from investments or other sources since it is not taxable and is usually clubbed with their parent’s income. However, in certain situations, minors are required to obtain a PAN card
- When they earn income through their own skill, knowledge, and talent
- If they have a physical disability.
- Additionally, if parents intend to make their minor child a nominee for investments or if the child’s name is used for investment purposes, then the child must have a PAN card.
- Opening a bank account or a Sukanya Samriddhi Yojana account for a minor daughter also requires a PAN card.
What are the documents needed for minor PAN cards?
The documents needed for minor PAN cards are similar to the KYC documents needed for adult PAN cards. However, there are a few additional documents of the parents or guardians needed to authenticate the application for a minor PAN card. The list of documents needed for applying for a minor PAN card is mentioned below.
- Proof of Identity (PoI) of the minor (minor’s birth certificate, school identity card, or Passport).
- Proof of Address (PoA) of the minor (minor’s school identity card, Passport, or any other valid document that shows the minor’s address).
- Proof of Identity (PoI) of the parent or guardian (parent’s PAN card, Passport, or any other valid document that shows the parent’s identity).
- Proof of Address (PoA) of the parent or guardian (parent’s Passport, driving license, or any other valid document that shows the parent’s address).
- A recent passport-size photograph of the minor.
- A copy of the minor’s birth certificate or school leaving certificate as proof of age.
How to apply for minor PAN cards?
Parents can apply for the minor PAn card either through the online or offline process. The detailed procedure in each case is mentioned below.
Online process for applying PAN card for a minor
The steps for the online process for a minor PAN card are
- Visit the NSDL website through the following link (https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html).
- Click on “Apply Online” under the “PAN” tab.
- Select the “New PAN – Indian Citizen (Form 49A)” option and fill in the necessary details.
- Select the category “Individual” and fill in the minor’s details.
- Upload the necessary documents, including the minor’s photograph, proof of identity, proof of address, proof of age, and the parent/guardian’s proof of identity and proof of address.
- Pay the applicable fees online using a credit/debit card, net banking, or demand draft.
- After submitting the form, applicants will receive an acknowledgment containing a 15-digit acknowledgment number.
Offline process for minor PAN Card
Offline process for applying a PAN card for a minor
The steps for the offline process to apply minor PAN card are
- Download Form 49A from the NSDL website or get it from any authorized PAN service center or agent.
- Fill in the form with the minor’s details and attach a recent passport-size photograph.
- Attach copies of the necessary documents, including the minor’s proof of identity, proof of address, proof of age, and the parent/guardian’s proof of identity and proof of address.
- Sign the form, and have it signed by the parent/guardian as well.
- Submit the form, along with the necessary documents and fees at any authorized PAN service center or agent.
- Upon successful submission, an acknowledgment number will be sent to the applicant which a be used to track the application status.
Awareness of minor PAN cards is relatively lower in the country but they can be used for KYC purposes. This PAN card is only valid till the child attains the age of 18 years. After attaining the age of 18 years, the PAN cardholder will have to make a fresh application for a valid PAN card and modify the minor PAN card to a regular PAN card.
The charges for applying for a new PAN card for an Indian address ad an address outside India are Rs. 93 and Rs. 864 respectively. The charge for converting a minor PAN once the child is 18 is Rs. 105. All these charges are excluding GST
After successful application, the PAN card is received after 15-20 days approximately.
As per the provisions of the Income Tax Act, 1961, there is no minimum age for a minor PAN card
Yes. Every PAN card has to be linked to the Aadhar card. Hence, if the minor has Aadhaar card as well, it needs to be linked to the PAN card.