The Permanent Account Number (PAN) card is an essential document. It is provided by the Income Tax Department. PAN is a unique identity number consisting of 10 digits. A PAN card includes your name, date of birth, name of your father or spouse, and a photograph. It is essential not only for yourself but also to ensure the financial future of your children.
A PAN card is required for a minor in specific situations
This card functions as an identification document for different financial and legal dealings. Section 160 of the Income Tax Act does not mention any age restriction for PAN card qualification. Hence, individuals of all ages are capable of contracting it. A PAN card is required for a minor in specific situations, particularly related to financial transactions or income declaration. If parents intend to designate their minor child as a nominee in investments like shares, mutual funds, or other financial products, they need to obtain a PAN card for their minor child.
When parents invest directly in a minor’s name, a PAN card is needed to adhere to financial regulations. The earnings of minors are typically combined with their parents’ income for tax calculations. Nonetheless, a minor requires a PAN card if they earn income on their own through work, business, or professional endeavors. In addition to this, a PAN is necessary if a minor generates income through their own skills, knowledge, or talents (for example, acting, sports, writing, or other similar pursuits). Additionally, a PAN card is frequently needed for qualification in scholarship initiatives and government programs.
How can one apply for a minor PAN card?
- To begin with, first visit Google and select the official NSDL website.
- Choose ‘New Pan-Indian Citizen (Form 49A)’ from this option.
- Now in the dropdown for categories, choose ‘Personal’.
- Complete the application form by providing the minor’s full name, date of birth, mobile number, and email ID.
- Once you’ve done this, complete the CAPTCHA and press submit.
- Here you will receive a token number.
- Take note of this and click on ‘Proceed with PAN application form’.
- Now choose the method for document submission and connect Aadhaar information.
- Include parent information, income specifics here, and attach necessary supporting documents.
- Submit the necessary payment to finalize the application.
- Upon validation, the PAN card will be processed in about 15 days.
- After the PAN card is prepared, you can retrieve it online.