When it comes to transactions that involve paying taxes, a PAN card is a must. PAN, short for Permanent Account Number, is a 10-character code that consists of alphanumeric numerals and is unique to every taxpayer. Every taxpayer in India is required to have a PAN card regardless of their nationality. This means that even foreigners who do businesses in the country are not excused.
However, there are cases where minors can be taxpayers too, thus requiring them to have a PAN card. If you haven’t heard of a scenario like this and you find your child in need of a PAN card, then read on to know more about how it can be applied for.
When does a minor need a PAN card?
Since the PAN card is for taxpayers, why does your child need a PAN card? This might be your first thought but you should know that the PAN card is not solely for tax purposes. The following are cases where your child is required to have this legal document:
– when you apply your investment under your child’s name
– when your child is already earning income for his or her self
– when you present your child as a beneficiary of your business, investments, properties, etc.
– when your child will open his or her own bank account
– when your daughter wants to open her Sukanya Samriddi Yojana account
Usually, when your child is already earning his or her own income, this is counted as part of your household’s income and the one who will file the income tax return will still be you. Nonetheless, the income your child will earn is still taxable thus making the PAN card a requirement.
How do you get a PAN card for your child?
There are two ways to apply for a new PAN for your child. The first is by going to the government’s authorized agencies or to the UTI Infrastructure Technology and Services Limited (UTIITSL). There will be forms to fill out and documents to pass.
The second option is done online. You can go to the PAN online services and download the forms applicable for minors. Fill out these forms completely and carefully since this information will be permanent. Among the two, the online PAN application is much easier and faster because you can already access these forms on the online site.
What documents should you pass for your child’s PAN application?
Depending on who’s applying for the child, the required documents may vary. This is to make sure that the person applying on their behalf has the authority to do so. As for your child’s documents, you need to prepare any government document that will verify your child’s personal information and their address.
When your forms and documents are approved, all you have to do is check the PAN status of your child’s card. You will get the results online since there is a list of accepted minors for the PAN card. You can find this on any PAN services website or on the Tax Information website itself.