A PAN 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 authority 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 card holder. 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 a number of activities, from paying taxes to buying property and vehicles, as well as to make 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, which the government body that issues the PAN cards, also issues PAN cards for minors.
Advantages of Applying for a PAN card for a Child
There are a number of 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 PAN Card for a Minor
Many people face this question - if a minor can apply for a PAN Card as it acts 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 NSDL 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.
Offline Process to Apply for PAN card for Minor
- Download Form 49 (for Indian residents) or Form 49A (for Indians not residing in India) from the Tax Information Website.
- The form is also available at UTISL offices and through their agents.
- Fill in the relevant details and attach copies of the documents required.
- For a minor PAN card, no photograph is required.
- Submit the form and documents to the nearest UTISL office along with the processing fee amount.
- On verification of the information submitted, the PAN card will be posted 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
- Driver’s licence
- Voter’s 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:
- 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)
Other Types of Pan Card
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
- 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