Your child needs PAN card for various purposes: Here is how to get one

A PAN card is often a requirement for eligibility in various scholarship programmes and government schemes

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A Permanent Account Number (PAN) for your children is essential in securing their financial future. The card serves as an identity document for various financial and legal transactions. Section 160 of the Income Tax Act does not specify any age limit for PAN card eligibility.

 

Why PAN card is required for minor

 

A PAN card is essential for minors in specific situations, primarily when financial transactions or income declarations are involved. Here's a detailed breakdown:

 

Parents must get a PAN card for their minor child if they plan to make the child a nominee in investments, such as shares, mutual funds, or other financial products.

 

If parents invest directly in the minor's name, a PAN card is required to comply with financial regulations.

 

Minors' income is generally clubbed with parents' income for tax purposes. However, if any of the following conditions apply, the minor’s income becomes taxable, necessitating a PAN card:

 

Own income generation: When the minor earns an income independently through employment, business, or professional activities.

 

Earnings from talent or skills: Income generated through the minor’s personal skill, knowledge, or talent (e.g., acting, sports, writing, or similar activities).

 

A PAN card is often a requirement for eligibility in scholarship programmes and government schemes. Possessing one unlocks access to numerous educational and financial benefits.

 

How to apply for a Minor PAN Card:

 

Go to Google, search for the NSDL PAN Application website, and click the first link (official NSDL portal).

 

Select 'new PAN-Indian citizen (Form 49A)'.

 

In the category dropdown, choose 'Individual'.

 

Provide the minor’s full name, date of birth (DOB), mobile number, and email ID in the application form.

 

Enter the CAPTCHA and click Submit.

 

After submitting, you will receive a token number.

 

Make a note of it and click on 'continue with PAN application form.'

 

Select document submission mode and link Aadhaar details.

 

Add the parents' details, income details, and upload the required supporting documents.

 

Pay the required fee to complete the application.

 

After verification, the PAN card will be processed within approximately 15 days.

 

You can download the PAN card online once it is ready.

 

Parental consent: The application must include parental or guardian consent as minors cannot apply independently.