PAN Card, also known as a Permanent Account Number Card, is an essential document for anyone who pays taxes in India. The card consists of a unique ten-digit alphanumeric code that is issued by the Income Tax Department. It helps to identify taxpayers and track their financial transactions. While adults can easily apply for a PAN Card, the process is not so straightforward when it comes to minors. However, obtaining a PAN Card for a minor is a crucial step towards promoting financial inclusion from an early age.
Why Is It Important For a Minor To Have a PAN Card?
In today’s era, it is essential to teach children about financial management from an early age to ensure financial security in their future. A PAN Card for minors is an excellent way to introduce them to the concept of taxation. Here are a few reasons why a minor should have a PAN Card:
1. To Open a Bank Account
Banks require a PAN Card as one of the mandatory documents to open a bank account. It will help minors to start saving money and understand the banking system, saving habits, and interest rates.
2. To invest in Financial Instruments
By having a PAN Card, minors can invest in financial instruments like mutual funds, stocks, and bonds. It will help them understand the importance of saving and investing money to earn more.
3. To Receive Gifts or Income
A PAN Card is an essential document in the case of receiving gifts from family or friends worth over Rs. 50,000 or receiving income from any source like rent. It will familiarize minors with the importance of keeping track of their income and expenses.
How To Apply for a PAN Card For a Minor?
The process of applying for a e PAN Card for a minor is not very different from that of applying for an adult. One can easily download the PAN Card application form from the official website of NSDL or UTIITSL. However, there are some additional documents that one needs to submit while applying for a PAN Card for a minor.
Here are the documents required while applying for a PAN Card for a minor:
1. Date of Birth Proof – Any of the birth certificate, school leaving certificate, or passport can be submitted as a date of birth proof.
2. Identity Proof – Any of the birth certificate, school leaving certificate, or passport can be submitted as an identity proof.
3. Address Proof – Any of the ration card, passport, electricity bill, telephone bill, or any other utility bill can be submitted as an address proof.
4. Photographs – Two passport size colored photographs are needed for PAN Card application.
5. Guardian’s PAN Card – It is mandatory to provide the PAN Card details of the guardian while applying for a PAN Card for a minor.
Additionally, documents like the Aadhar Card, Voter ID, or Driving License can also be submitted along with the above-mentioned documents.
Once you have all the necessary documents, follow these steps to apply for a PAN Card for a minor:
1. Visit the official website of NSDL or UTIITSL and search for the PAN Card application form.
2. Fill in the required details of the minor and the guardian.
3. Attach all the necessary documents along with the application form.
4. Then pay the required fee and submit the application form.
5. Upon successful submission of the application form, a 15-digit acknowledgment number will be generated.
6. Track the status of your application form on the official website using the acknowledgment number.
7. If there are no discrepancies, you will receive your PAN Card in a few days.
What is the PAN Card status?
Once you have applied for a PAN Card, it is important to keep track of the status of your application. You can easily check the status of your PAN Card application on the official website of NSDL or UTIITSL. It takes around 15-20 days for the PAN Card to get processed and dispatched. However, in the case of any discrepancies or missing documents, the process can get delayed.
Here are the steps to check the PAN Card status:
1. Go to the official website of NSDL or UTIITSL.
2. Click on the ‘PAN Card’ tab and select the ‘Track PAN Card Status’ option.
3. Enter your application number or acknowledgment number.
4. Click on ‘Submit’ to check the status of your PAN Card.
5. The page will show the current status of your PAN Card application.
Use of PAN Card for minors
Having a PAN Card opens up various avenues for minors to learn about financial management and taxes. Here are a few benefits of having a PAN Card:
1. Filing Income Tax returns
If a minor has taxable income or their income from investments exceeds the taxable limit, they will need to file an Income Tax return. Having a PAN Card allows them to file an Income Tax Return online and helps them understand the tax system.
2. Opening a Demat account
Once minors turn 18, they can easily convert their minor PAN Card to a regular PAN Card. This opens up more investment options like opening a Demat account and investing in shares.
3. Applying for Passport
A PAN Card is also a valid ID proof to apply for a passport. Once minors turn 18, they can apply for their passport with ease.
Conclusion
A PAN Card is an essential document for anyone who pays taxes in India. The process of obtaining a PAN Card for a minor is not very different from that of obtaining one for an adult. By having a PAN Card, minors can learn about financial management, taxation, and the importance of saving and investing money. It opens up various avenues for them to learn about the financial system and prepares them for their future. It’s important to promote financial inclusion from an early age, and having a PAN Card for minors is one of the best ways to do it. With the help of online services provided by the government, one can easily download and apply for a PAN Card for a minor. Therefore, parents and guardians should encourage minors to obtain a PAN Card to ensure financial security and promote financial awareness.