What Are the Benefits of Having a PAN Card for a Minor?

Money September 21, 2022

This post was last updated on January 17th, 2024

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.

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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.