A PAN card is an electronic system, universal identification & proof of financial transactions issued by the Income-tax Department that keeps track of monetary transactions. A PAN means Permanent Account Number, which is a 10-digit code.
A PAN card is necessary to open a bank account. But, before we know the benefits of having a PAN card, an important thing that everyone should know is a minor can also hold a PAN card, as the minimum age is not specified by the Income Tax department.
Now first let us know why one should have a PAN card for a Minor.
- The first benefit of having a PAN card is a person can open a bank account regardless of whether the PAN card holder is a major or a minor.
- A minor PAN card allows you to create your passport.
- A PAN card enables a minor to pay income tax.
- A PAN card Acts as identity proof for a minor.
- A minor can be nominated for investments made by their parents before the child reaches the age of 18 with the use of a minor PAN card.
- If the minor has a disorder like blindness or earns the income on his own, money made through skills, talent, and knowledge will not be taxable.
- PAN card allows a minor to apply for an education loan.
- PAN allows you to open Sukanya Samriddhi Yojana for a child (daughter).
What are the Disadvantages of having a minor PAN Card?
- Upgradation of a minor-major PAN card will cost you money and time.
- When you convert a PAN card from a minor to major, it differs in format & resubmission.
- It creates a problem in the case of the DEMAT account.
Here are the documents required to apply for a PAN card:
A minor is required to submit any one of the following documents mentioned below for applying for a PAN card:
- Home ration card
- Aadhar card
- Voter ID card
- An issued mark sheet from a recognized educational institution
- Passport
- Driver’s license
- Arm’s license
- Birth certificate
- Post office passbook
- Property registration documents
- Employer certificate
- Domicile certificate.
- Pensioner card.
- Card issued by the central government for health service scheme.
Here is how a minor can apply for a PAN card:
The application fee for a PAN card in India is Rs. 115.90 and includes all taxes and it keeps changing. A minor can apply for a PAN card in two ways, online & offline.
Applying for a minor PAN card through an online portal
- Visit the official website of NSDL, https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
- Fill in the required information.
- Upload the documents and passport-size photographs.
- Make the payment for the asked fee on the portal.
- Then the next step is the verification process that help’s to track the status of the application.
- Once you finish all the steps, the PAN card will be allotted to the child within 60 days of receiving the SMS.
Applying for a minor PAN card through an offline portal
- Go to the official website of NSDL and download Form 49A.
- Attach the specified documents, fill out the form and attach two passport-size photographs.
- Pay the required fees for the minor PAN card with the application and submit required documents at the nearest NSDL office.
- Once the verification is successful, the PAN card will be delivered to the registered address.
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