A Minor PAN Card or Permanent Account Number Card is a unique identification that is assigned to every tax-paying citizen of India. All tax-paying entities, such as individuals, companies, local authorities, etc. are expected to have a PAN card. It links all financial transactions that would attract tax, making it easier for the government to record all tax-related information for each PAN cardholder. It is also to Non-Resident Indians, Persons of Indian Origin as well as foreigners who have business interests in the country.
A PAN card is necessary for several activities, from paying taxes to buying property and vehicles, as well as making large investments and cash deposits. Thus a PAN card is essential.
While most individuals apply for their PAN card on attaining the age of 18, the NSDL, the government body that issues the PAN cards, also issues PAN cards for minors.
If you plan to invest in your child’s name, chances are that you will require a PAN card in his or her name. Not many people are aware of the fact that the Income Tax Department allows parents or guardians to apply for a PAN card for their child(ren) or ward(s) who is below 18 years of age.
Parents who are applying for a PAN card for their child will have to submit identity-proof and residential-proof documents among others. Guardians will also have to provide a statement of proof that notifies them as the legal guardian of the child. In addition to these documents, to apply for a Minor PAN card, you will also need to provide Aadhar details of the minor While you are required to submit photos of the minor, the physical copy of the PAN card will not have the photo. It will include the minor’s details as well as the name and signature of the parents or guardians.
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Advantages of Applying for a PAN card for a Child
There are several advantages associated with applying for a Pan card for a minor, which are listed below:
- In the event the minor is to be made a nominee on property, shares or any financial product, the minor will require a PAN card.
- If an investment is to be made in the name of the minor, the minor’s PAN card details will have to be furnished at that time.
- As a PAN card is a permanent number that will not be changed throughout the lifetime of the holder, the child’s PAN card number will remain the same irrespective of name/address change.
- While a PAN card is meant to collate all tax related information on the holder, the income of a minor from any income or investments they hold will not be taxable, except under certain conditions mentioned below:
- If the minor has a physical disability, suffers from total blindness etc
- If the minor has earned the income himself/herself
- If the income/investment is a result of the child’s application of his/her own skills and talent
Applying for a Minor PAN Card
Many people face this question – if a minor can apply for a PAN Card as it acts as an important identity proof. The procedure for applying for a PAN card for a minor is a simple and streamlined one. The Government has provided two avenues for those wishing to apply for a PAN card, with the service available both offline as well as online.
Online PAN Application Process for Minor
The procedure for applying for a PAN card for a minor online is mentioned below:
- Visit the Tax Information Network website of the Protean eGov Technologies Limited and click on the “Online PAN Application” tab.
- Select the appropriate option from the drop-down menu, i.e. Form 49 or Form 49A, depending on your residency status.
- After going through the instructions, select the category of the applicant from the drop down list provided and click “Select”.
- Fill in the details requested in the form that appears onscreen.
- Upload the supporting documents as mentioned in the form’s guidelines and make the online processing fee payment.
- Once the form has been filled in, click on “Submit” after which a reference number will appear onscreen. This can be used to track the status of the application.
- The PAN card will be sent by post to the address mentioned in the form.
Procedure to update PAN Card of Minor on becoming Major
In the event of a minor turning into a major, the existing PAN card in his/her name needs to be modified to reflect the new changes. A simple and hassle-free procedure has been put in place to complete these formalities, with one expected to follow the following steps.
- Fresh account opening form – On attaining maturity, an individual who held a PAN for a minor is expected to apply for a fresh account, utilising Form 49A (if he/she is an Indian citizen) or Form 49AA/ (if he/she is a foreign citizen).
- Fill form – The form needs to be filled with relevant information, with the applicant expected to sign it and update any new details (if any).
- Documents – An applicant should submit relevant documents, including photographs and address proof.
- Submission – The form can be filled and submitted, either online or offline. Individuals should ensure that the details are accurate before submitting it.
- Payment – An individual is expected to make the requisite payment, with the amount depending on the communication address. People with an address within the country need to pay Rs 107 while those outside the country need to pay Rs 989.
- Acknowledgement – On successful payment, an acknowledgement number will be generated, which can be used for future correspondence with the department.
Documents to be submitted for PAN card for Minor or Child
The following documents have to be submitted along with the PAN card application form for minors:
Proof of age to apply for PAN Card for Child:
A copy of any one of the following documents can be submitted as proof of age as applicable:
- Aadhaar card
- Municipal birth certificate
- Mark sheet issued by recognised educational board
- Passport
- Driver’s licence
- Voter ID card
- Central government issued photo ID card
Proof of address to apply for PAN Card for a Child
A copy of any of the below documents can be submitted towards proof of address as applicable:
- Passport
- Voter’s ID card
- Domicile certificate issued by a state government
- Aadhaar card
- Post office passbook mentioning the applicant’s address
- Property document
- Original Certificate of address signed by a Member of Parliament/Member of Legislative Assembly or Legislative Council/Gazetted Officer
- Electricity/landline/water/consumer gas bill (not more than 3 months old)
- Credit card/account statement (not more than 3 months old)
Proof of identity to apply for PAN Card for Minor:
A copy of any of the following can be submitted as proof of identity:
- Aadhaar card
- Passport
- Ration card
- Government-issued photo ID card
- Driver’s licence
- Voter ID card
- Original Certificate of identity signed by a Member of Parliament/Member of Legislative Assembly or Legislative Council/Gazetted Officer
- Original bank certificate on official letterhead along with photograph from issuing bank branch, attested by a bank officer
UPDATE: Customers who have procured PAN cards for their children can now, through the filling of a single form, use the same card when their child becomes an adult. This is because PAN cards made for a person when they are below 18 cannot be used when the person becomes an adult and becomes invalid. A PAN card is generally used as proof of identification and if a person below 18 procures a PAN card, then that card will neither have his/her photo nor his/her signature and hence cannot be used for identification.
Therefore, customers need to ensure that this issue is sorted out at the earliest. To do so, customers will have to fill in a form and this can be availed both offline or through the NSDL website. After providing the required documents and a photograph, customers will have to submit this form post which they will receive a tracking number. A fee of Rs. 107 will have to be provided for the amendment of the PAN card.
To know more about PAN click here.
Know more about Aadhar click here
Useful Resources
https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
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