Minor PAN card: Does your child need a PAN card?

What is the relevance of a minor PAN card in India? Does your child have a PAN card for minor? 

Here’s the significance of a minor PAN card for your child.

In an era of growing financial awareness, you as parents might be increasingly looking for ways to secure their child's future. 

Early financial planning has become common. These days, parents are opening savings accounts to make investments in their name. 

However, amidst all of these preparations, one document often comes into question. It’s the PAN card. 

But can a minor have one? 

The answer is yes. Let’s learn more about the PAN card for minors and its features, such as the absence of a minor’s signature and photograph.

What is a Minor PAN Card?

A minor PAN card is a Permanent Account Number (PAN) card issued to an individual below the age of 18. 

Here are some of its features:

• It is functionally the same as a regular PAN card.
• A minor PAN card carries the same unique 10-digit alphanumeric number.
• This PAN number would remain valid for the individual's entire life. 

However, there are a few main distinctions. 

A PAN card for a minor does not display the minor's photograph or signature; instead, the card indicates 'Minor' in place of the photo, and the parent or guardian's signature is used. 

With all these details, the minor PAN card can be a crucial financial tool required for specific transactions made in the child's name.

Why a Minor PAN Card is Essential

It is not mandatory for every child to have a PAN. But obtaining a minor PAN card can become essential in several financial scenarios. A parent or guardian might need to apply for one when they plan to make their child a part of their financial world.

Here are the major reasons why your child might need a minor PAN card:

• To Make Investments: If you wish to make investments in your child's name, such as in mutual funds, stocks, or bonds, having a PAN is mandatory. The investment will be in the minor's name, with you acting as the guardian.
• To Open a Bank Account: To open a bank account for your child, especially if the account or transactions involve higher amounts, a PAN card is usually required to comply with banking regulations.
• To Designate a Nominee: If you want to make your child a nominee for your property, insurance policies, or other financial assets, their PAN will be required to process the nomination smoothly.
• For Income Earned by the Minor: In cases where a minor earns an income (for example, through child artistry, specific talents, or investment returns), this income is typically clubbed with that of the parent with the higher income. A PAN is necessary for filing income tax returns in such situations.

The Application Process for a Minor PAN Card

You can apply for a PAN card for minor with a simple online process. The parent, guardian, or authorised representative needs to apply on behalf of the minor.

The designated form for this application is Form 49A. You can fill out this form through the official portal of Protean eGov Technologies Ltd.

The following documents are required for a minor PAN card online:

• Proof of Identity and Address of the Minor: The minor's Aadhaar card or birth certificate can serve as proof.
• Proof of Identity and Address of the Guardian: The parent's or guardian's Aadhaar card, Voter ID, or passport is required.
• Photographs: A recent passport-sized photograph of the minor is required for application. However, no photograph would appear on the minor PAN card.

The guardian will need to sign the application form. After filling out the form online and uploading the necessary documents, the application fee must be paid. Once submitted, you will receive an acknowledgment number to track the status of the application.

The process would involve applying for a 'Correction/Change in PAN Data'. 

Here’s what needs to be done:

1. A new application must be submitted using the PAN correction form.
2. The application must include the individual’s recent passport-sized photograph and their signature.
3. The 'Representative Assessee' details must be removed from the form.
4. The application must be supported by proof of identity, address, and age.

This minor PAN card update is mandatory. Failing to update the minor PAN card might lead to issues in financial transactions. The old card without a photo and signature would be considered invalid for an adult.

Conclusion

Securing a PAN card for minor is a proactive and responsible step for any parent looking to build a sound financial foundation for their child. 

A minor PAN card is a key that unlocks opportunities for savings, investments, and financial independence for your child. 

The process is simple and ensures that all financial transactions made in your child's name are properly documented and compliant with the nation's tax laws. Get a minor PAN card for your child now.

Frequently Asked Questions (FAQs)

1. Does a minor PAN card contain the child's photograph? 

No, a minor PAN card does not have the minor's photograph or signature. The details and photograph of the parent or guardian, who acts as the representative assessee, are used instead.

2. Is the PAN different after the minor becomes an adult?

No, the 10-digit Permanent Account Number (PAN) remains the same for life. Only the physical card needs to be updated with the individual's photograph and signature once they turn 18.

3. Can a minor file their own income tax return?

A minor is not required to file an income tax return themselves. If the minor has an income, it is clubbed with the income of their parent or guardian, who then files the return on their behalf.

4. How to apply for a minor PAN card online? 

The parent, guardian, or any other representative assessee need to apply for a minor PAN card on behalf of the minor. The designated form for this application is Form 49A. You can fill out this form through the official web portal of Protean eGov Technologies Ltd.