Why Is A PAN Card Necessary for Minors and How Can You Obtain One?

PAN Card

PAN or Permanent Account Number is a unique 10-digit alphanumeric code that is issued by the Indian Income Tax Department to every Indian citizen who pays taxes. It is vital to PAN cardholders as a means of filing their taxes, opening new bank accounts, and many other financial transactions. Although the PAN card is not mandatory for people below the age of 18, it is highly recommended for minors to obtain the card. This article aims to provide a comprehensive guide on why the PAN card is necessary for minors and how to obtain one.

a. Why is a PAN Card Necessary for Minors?

PAN card of a minor child can benefit their guardians or parents in many ways, the most crucial being to secure the child’s future by providing him or her with a valid proof of identity. A PAN card has many benefits, such as:

1. To Open a Bank Account

A minor is eligible to have a savings account in his or her name, and this account can be opened by the guardians or parents. Being a mandatory requirement to open a bank account, the PAN card helps to identify the minor’s account from the legal standpoint. It is also easier to track all the transactions and check how much money is being deposited or withdrawn by the guardians.

2. To Invest in Stocks or Mutual Funds

Minors are allowed to invest in stocks and mutual funds with the help of their guardians. A PAN card is mandatory for investing and trading in stocks and mutual funds; hence, it is essential for the guardians to have a PAN card for the minor child.

3. To Secure The Future

The PAN card is a vital document that can help secure the child’s future regarding his/her financial transactions. With the PAN card, the child can start working from the age of 15 and file his or her income tax returns.

4. To Avail Scholarships

Many scholarships require the PAN card as proof of identity. Minors who are eligible for the scholarship can only avail of the scholarship if they have a PAN card.

b. How Can You Obtain a PAN Card for Minors?

Getting a PAN card for minors is a hassle-free process, and the application can be submitted both online and offline. The online method is faster and more convenient; however, the offline method is also available.

1. Online Application

The online application for a PAN card can be submitted by visiting the official website of the Income Tax Department of India. The steps to apply for the PAN card online are:

Step 1: Visit the official website of the Income Tax Department, which is https://www.incometaxindia.gov.in/Forms/PAN.html

Step 2: Click on the “New PAN Card (Form 49A)” button.

Step 3: Fill in the Application Form.

a. Select the Category as “Minor.”

b. Fill in the personal information section, including the minor’s name, date of birth, address, etc.

c. Upload the necessary documents such as identity proof, address proof, and a passport-sized photograph of the minor.

d. Assign an AO code, which is the area code for the jurisdiction of the applicant.

Step 4: Pay the Required Fee.

The fee to apply for a PAN card is INR 110 (inclusive of GST). The fee can be paid online through debit or credit card, internet banking, or by DD or cheque drawn in favor of “NSDL-PAN.”

Step 5: Submit the Application.

Once the payment is made, the application is submitted for processing. A 15 digit acknowledgement number will be generated, which can be used to check the status of the application.

2. Offline Application

The offline application can be downloaded from the official website of the Income Tax Department or obtained from any UTI or NSDL PAN Center. The steps to apply for the PAN card offline are:

Step 1: Download and Print the PAN Application form.

Step 2: Fill the Application form.

a. Select the Category as “Minor.”

b. Fill in the personal information section, including the minor’s name, date of birth, address, etc.

c. Attach the necessary documents such as identity proof, address proof, and a passport-sized photograph of the minor.

d. Assign an AO code, which is the area code for the jurisdiction of the applicant.

Step 3: Attach the Required Documents.

The documents required for PAN application for a minor are:

a. Proof of Identity: Birth certificate, Aadhaar card, Passport, or any other document.

b. Proof of Address: Aadhaar card, Passport, Electricity bill, Telephone bill, or any other document.

Step 4: Pay the Required Fee.

The fee to apply for a PAN card is INR 110 (inclusive of GST). The fee can be paid through a Demand Draft or cheque drawn in favor of “NSDL-PAN.”

Step 5: Submit The Application.

Once the form is duly filled, the application can be submitted to any UTI or NSDL PAN Center. Upon submission, an acknowledgement receipt is issued, which can be used to track the application.

c. Udyam Registration

Apart from getting a PAN card, it is vital to register your business to take advantage of various government schemes. Udyam Registration is a new online registration process that replaces the old MSME registration process. It is a simple process that can be done online by any business owner who runs a micro, small, or medium enterprise in India.

To register for Udyam, the business owner must have the following documents:

1. PAN Card

2. Aadhaar Card

3. Business Address Proof

4. Bank Account Details

5. Business details such as the type of business, number of employees, investment, and turnover.

The Udyam registration process includes the following steps:

Step 1: Visit the official website of Udyam Registration, https://udyamregistration.gov.in/

Step 2: Click on the “New Udyam Registration” button.

Step 3: Fill in the Application Form.

a. Fill in the personal details section.

b. Fill in the business details section.

c. Provide the supporting documents such as PAN card, Aadhaar card, and Business address proof.

Step 4: Pay the Required Fee.

The registration fee for Udyam is free, and no charges are levied. However, it is essential to verify the details before submitting the application.

Step 5: Submit The Application.

Once the application is submitted, the registration certificate will be generated, and the applicant can download it. The registration certificate can be used as proof of registration while availing of government schemes.

d. e-Aadhaar Card Download

It is essential to have an e-Aadhaar card as it serves as a valid identity proof and is used in various transactions. The e-Aadhaar card can be downloaded either online or offline. The steps to download e-Aadhaar card online are:

Step 1: Visit the official website of the UIDAI, which is https://uidai.gov.in/

Step 2: Click on the “Download Aadhaar” button.

Step 3: Enter the Personal Information.

a. Enter the 12 digit Aadhaar number.

b. Fill in the details such as name, pin code, and Captcha code.

Step 4: Generate OTP.

A One-Time Password will be sent to the registered mobile number or email ID.

Step 5: Download the e-Aadhaar Card.

The downloaded e-Aadhaar card can be used as valid proof of identity.

Conclusion

In conclusion, obtaining a PAN card for minors is essential for securing their future regarding financial transactions. The process of obtaining a PAN card is hassle-free and can be done both online and offline. It is also crucial to register for Udyam to avail of the various government schemes with ease. Finally, it is vital to download the e-Aadhaar card, which serves as a valid identity proof. Overall, following the above steps can help minors get a PAN card and access various benefits, thereby securing their future.

By guestpost013

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