A Permanent Account Number (PAN) is an essential document for financial transactions and tax purposes. While it is commonly issued to adults, minors are also eligible to obtain a PAN. This enables parents or guardians to manage a child’s financial activities. Understanding the benefits of obtaining a PAN for minors is key to effective financial planning.
Why A Minor PAN Card Can Be Beneficial?
Here are the key reasons why obtaining a PAN for minors can be advantageous:
Investment Nominee: A PAN enables children to be appointed as nominees for stocks or mutual funds, ensuring effective asset management with proper documentation
Income Management: A PAN may be needed for a minor to file taxes if they earn income from activities like acting or sports. While there are exemptions, the income is typically added to the parent’s income for tax purposes
Opening Bank Accounts: With a PAN, minors can open and manage their own bank accounts, helping parents oversee transactions like deposits and savings
How to Apply for a PAN for Minors?
1. Visit the Official Website: To begin the PAN application procedure for a minor, go to the NSDL website.
2. Fill Out the Application Form: When filling out the form, choose "Individual" as the application type and select Minor
3. Prepare the Required Documents: You will need the minor's birth certificate as identification when applying for a PAN card, and the guardian's passport or Aadhaar card as identification and proof of residency
4. Submit the Application: After filling out the form and making the payment, proceed to submit it online
5. Send the Documents: Once the online application has been submitted, mail the necessary documents to the PAN centre
6. Receive the PAN: Within 15 to 20 days, the PAN card will be delivered to the registered address
What to Do When a Minor Turns 18?
When a minor turns 18, they must update their PAN card to include their photograph and signature, while keeping the same PAN number. They must complete Form 49A (for Indian nationals) or Form 49AA (for foreign citizens) in order to do this. You can submit the application offline or online. They must submit the form with the required documents, which includes a current picture, proof of address, and identification. They will receive an acknowledgement number verifying the update request after completing the form and paying the necessary price. Within a few days, the registered address will receive the updated PAN card.
