PAN for Minors: When is it Required and How to Apply for Your Child

A PAN for minors can be useful in several financial and tax-related situations, even though it is not mandatory for every child. For investing in your child's name, receiving taxable income on their behalf, or opening certain financial accounts, a minor PAN card can help ensure compliance with tax regulations and simplify future financial transactions.

Let us learn more about PAN for minors and how to apply for one.

What Is a Minor PAN Card?

A minor PAN card is a Permanent Account Number (PAN) issued to individuals below 18 years of age by the Income Tax Department of India. As with a PAN issued to an adult, it is a unique 10-character alphanumeric identifier used for tax purposes and specified financial transactions.

While every minor is not required to have a PAN, it may be needed in certain circumstances. A parent or legal guardian generally applies on behalf of the child and acts as the Representative Assessee for the application. The parent or guardian also provides the applicable documents and signs the application on the minor's behalf.

A PAN card for a child does not display the minor's photograph or signature. Once the child turns 18, the PAN details should be updated with their photograph and signature through a PAN correction or update application.

Who Is Considered a Minor for PAN Purposes?

For PAN-related purposes, an individual below 18 years of age is generally treated as a minor. The minor PAN card age limit therefore corresponds with the general age of majority in India, which is 18 years. A parent, guardian, or other competent person can act as the Representative Assessee and handle applicable tax-related matters on the minor's behalf.

Is PAN mandatory for minors?

No, a PAN card is not mandatory for every minor. However, it may become necessary in certain financial situations. For example, a minor may need a PAN for child investment when making certain investments in their name, if they receive income from sources such as taxable awards or prizes, or if PAN is required for banking, tax compliance, or specified financial transactions. In such cases, the guardian generally applies on behalf of the child.

When Is PAN Required for Minors?

A minor PAN card may be required in the following situations:

• Investments such as mutual funds are made in the child's name, and PAN is required for the transaction.
• Parents create fixed deposits or other financial instruments in the child's name that require PAN.
• The child earns taxable income from investments or assets received through inheritance.
• Income generated in the child's name needs to be reported under applicable tax provisions.
• The child is named as a beneficiary in a financial product or account where PAN is required.
• Certain government schemes or specified financial transactions require PAN verification.

How to Apply for a Minor PAN Card Online

Parents and guardians can conveniently apply for a PAN card for minors online through authorised PAN service providers. The overall process is simple and requires accurate information and supporting documents.

The minor PAN card application generally involves the following steps:

1. Visit the Protean (formerly NSDL e-Governance) application portal.
2. Select New PAN - Form 93 - and choose "Individual" as the applicant category.
3. Complete the application form with the requested details and upload the required documents.
4. Pay the applicable fee online (Rs. 107, inclusive of all applicable taxes).
5. Use Aadhaar authentication post payment. Forward the documents to the address below, where applicable:

Protean eGov Technologies Limited
Income Tax PAN Services Unit
4th Floor, Sapphire Chambers, Baner Road,
Baner, Pune - 411045

Documents Required for a Minor PAN Card Application

The minor PAN card documents required usually fall into three categories:

Proof of Identity (POI) (Of the Parent or Guardian)

• Aadhaar Card
• Driving Licence
• Passport
• Voter ID
• Other acceptable government-issued ID

Proof of Address (POA) (Of the Parent or Guardian)

• Aadhaar Card
• Driving Licence
• Passport
• Post office passbook containing address details
• Government-issued domicile certificate
• Electricity or water bill, not more than three months old

Date of Birth Proof for the Minor

• Birth certificate
• Government-issued domicile certificate
• Other acceptable proof of date of birth under the applicable rules

A recent passport-sized photograph of the child may also be required, depending on the application mode. Applicants should ensure that all submitted documents are valid, clear, and consistent with the details provided in the application.

Minor PAN Card Application Process

Parents or guardians can complete a minor PAN card online application through the Protean portal by selecting the applicable PAN form, entering the required details, uploading supporting documents, and paying the prescribed fee. Aadhaar authentication may be completed after payment, while physical documents must be sent to the designated Protean address where required.

Minor PAN Card Processing Time and Fees

A PAN for minors application is normally processed and the card dispatched within about 15-20 working days, although the actual timeline may vary. The minor PAN card fees depend on whether a physical card is requested and the mode of application.

*Fees are subject to government revisions.

How to Update a Minor PAN Card After Turning 18

A PAN issued to a child remains valid after they turn 18, so a new PAN is not required. However, since PAN for minors is issued without the minor's photograph and signature appearing on the card, these details should be updated after adulthood. An updated PAN may be needed for purposes such as filing an Income Tax Return (ITR), opening or operating certain financial accounts, making investments, or applying for credit.

The update process generally involves:

1. Visit the Protean or UTI Infrastructure Technology and Services (UTIITSL) portal.
2. Select the option to make changes or corrections to existing PAN details.
3. Enter the existing PAN and complete the application with the required information.
4. Provide a recent photograph and signature along with the applicable supporting documents.
5. Pay the prescribed fee and submit the application.
6. Save the acknowledgement or reference number to track the application.

PAN is also an important KYC and tax identification document when applying for credit products like a personal loan, helping lenders verify the applicant's identity and assess relevant financial information.

However, note that loan approval is subject to meeting the lender's overall eligibility criteria and submitting the other personal loan documents required.

Common Mistakes to Avoid While Applying for a PAN for Minors

Errors in the application can delay the issuance of PAN for minors or result in the application being rejected. To reduce the chances of errors, keep the following points in mind:

• Enter the child's name exactly as it appears on the supporting documents.
• Make sure the date of birth matches the document submitted as proof.
• Provide complete and accurate details of the parent or guardian.
• Upload clear, valid, and legible supporting documents.
• Check that the information across all submitted documents is consistent.
• Review names, dates, addresses, and other details carefully before submission.
• Keep the acknowledgement number or receipt for tracking and future reference.

Benefits of Having a PAN Card for a Minor

Some key benefits of a PAN for minors include:

• Enables investments and specified financial transactions in the child's name where PAN is required.
• Supports tax compliance when the child has income subject to applicable tax provisions.
• Provides a permanent tax identification number that remains valid throughout the individual's lifetime.
• Facilitates investments in mutual funds and other eligible financial products.
• Helps parents and guardians manage certain financial activities undertaken on the child's behalf.
• Makes it easier to meet PAN requirements for applicable financial transactions.
• Provides continuity after the child turns 18, although the PAN card should be updated with their photograph and signature.

Conclusion

A PAN for minors is not compulsory for every child, but it may be required in certain financial and tax-related situations. Parents or legal guardians can apply online by submitting the required documents and completing the prescribed verification process. After the child turns 18, the PAN details should be updated with their photograph and signature for use as an adult.

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