"My daughter is eight years old. We want to open a fixed deposit in her name and start a Sukanya Samriddhi account. Someone told us she needs a PAN card for this. Is that right? And how does it work for taxes?"
This is one of the most practical questions parents ask - and it comes up far more often than most people expect. Whether you are investing in your child's name, opening a bank account, or simply planning ahead, a minor PAN card is something every parent should understand clearly.
The process is straightforward. But the tax rules around a minor's income are something most parents overlook entirely - and that oversight can create compliance issues down the line. This guide covers everything from how to apply to what happens when your child turns 18.
What Is a Minor PAN Card and Who Needs One
A minor PAN card is a Permanent Account Number issued to a person below the age of 18. It is the same PAN as issued to adults - the same format, the same issuing authorities (NSDL or UTIITSL), and the same permanent nature. The only difference is that the application is made by a parent or guardian on the child's behalf.
A minor PAN card becomes necessary in several common situations:
- Opening a bank account in the child's name where PAN is required
- Investing in mutual funds, fixed deposits, or bonds in the minor's name
- Receiving gifts, inheritance, or income above the basic threshold
- Applying for a passport where PAN is listed as a supporting document
- Sukanya Samriddhi Yojana, PPF for minors, or similar government schemes
There is no minimum age requirement. A PAN card can be obtained for a child from birth if there is a genuine need for it.
How to Apply for a Minor PAN Card - Step by Step
The application process for a minor PAN card follows the same route as an adult PAN application. You apply online through NSDL (now Protean) or UTIITSL using Form 49A.
- Go to the NSDL or UTIITSL portal and select New PAN for Indian Citizens (Form 49A)
- Fill in the child's personal details - name, date of birth, and address
- In the parent or guardian section, provide the father's or mother's PAN details
- Upload the required documents
- Pay the processing fee - currently around Rs 107 for a physical card delivered within India
- Submit and note the acknowledgement number for tracking
Documents required for a minor PAN card application:
Proof of identity: Child's birth certificate, or school leaving certificate, or passport
Proof of address: Parent's or guardian's address proof - Aadhaar, passport, voter ID, or utility bill
Photograph: Recent passport-size photograph of the minor
Parent or guardian details: Copy of parent's PAN card and identity proof
Note: The minor's own Aadhaar card, if available, can also serve as both identity and address proof.
The PAN card is typically issued within 15 working days of successful application and verification. It is sent to the address provided in the application.
The Tax Rules for a Minor's Income - What Parents Must Know
This is the part most parents do not think about when applying for a minor PAN card - and it is arguably the most important part from a compliance standpoint.
Under the Income Tax Act, income earned by a minor child is clubbed with the income of the parent who earns more. This is governed by Section 64(1A). So if you invest Rs 5 lakhs in a fixed deposit in your child's name and it earns Rs 35,000 as interest in a year, that Rs 35,000 is added to your taxable income - not your child's.
The Rs 1,500 exemption per child: The parent in whose hands the minor's income is clubbed gets a small exemption of Rs 1,500 per minor child per year under Section 10(32). So if the clubbed income from your child's investment is Rs 35,000, you can claim Rs 1,500 as exempt and the remaining Rs 33,500 is added to your income and taxed at your applicable slab rate.
This clubbing rule applies to income from investments made using the parent's money. There are two exceptions worth knowing:
- Income earned by a minor through their own manual work or skill - for example, a child actor or a child athlete earning professionally - is not clubbed and is taxed separately in the child's hands
- Income of a physically or mentally disabled minor as defined under Section 80U is also not clubbed with the parent's income
Does a Minor Need to File an ITR
In most cases, no - because the minor's income is clubbed with and declared in the parent's ITR. The parent includes the minor's income in their own return under the appropriate schedule and claims the Rs 1,500 exemption per child.
However, if a minor has income from their own skill or manual work that is taxable in their own hands and exceeds the basic exemption limit, a separate ITR must be filed for the minor. In such cases, the parent or guardian files the return on the minor's behalf and signs it as the representative assessee.
What Happens to the Minor PAN Card When the Child Turns 18
This is a step most parents completely miss. When the minor turns 18, the existing PAN does not expire - it remains valid. But the card needs to be updated with fresh biometric details, a photograph, and a signature, since the card was originally issued without a signature.
The child - now an adult - must submit a PAN correction or reprint request through NSDL or UTIITSL with updated documents including their own Aadhaar, photograph, and signature. The PAN number itself does not change. Only the card details are updated.
Do not ignore this step: A minor PAN card without an updated signature becomes practically unusable for most financial transactions once the child is an adult - banks, brokers, and financial institutions require a valid signature on the PAN for KYC purposes. Updating the card immediately after turning 18 avoids this problem entirely.
Common Questions Parents Ask About Minor PAN Cards
Can a minor have investments in their own name?
Yes. Minors can hold investments - fixed deposits, mutual funds, Sukanya Samriddhi accounts, and PPF accounts - in their own name operated by a guardian. The income from these investments is clubbed with the parent's income as explained above.
Is a minor PAN card linked to the parent's PAN?
The application requires the parent's PAN to be mentioned, but the minor's PAN is an independent number. It is not technically "linked" in the way Aadhaar and PAN are linked for adults. However, the parent's PAN is recorded in the minor's application data.
Can a minor PAN card be used as identity proof?
A PAN card is not typically accepted as age proof or identity proof for minors in most official contexts because it does not carry a photograph for minors below a certain age in older cards. A birth certificate, Aadhaar card, or passport is more appropriate for a minor's identity verification.
Frequently Asked Questions
Can a minor get a PAN card in India?
Yes. A minor PAN card can be obtained for a child of any age in India. The application is made by the parent or guardian on the child's behalf using Form 49A through NSDL or UTIITSL. There is no minimum age restriction for applying.
What documents are required for a minor PAN card?
You need the child's birth certificate or school certificate as proof of identity, the parent's address proof as proof of address, a recent photograph of the minor, and a copy of the parent's PAN card and identity proof. If the child has an Aadhaar card, that can serve as both identity and address proof.
Is the income of a minor child taxable in India?
Yes, but it is taxed in the parent's hands, not the child's. Under Section 64(1A), income earned by a minor from investments is clubbed with the income of the higher-earning parent. The parent can claim an exemption of Rs 1,500 per minor child under Section 10(32). Income earned by a minor through their own skill or manual work is taxed separately in the minor's hands.
Does a minor PAN card need to be updated after the child turns 18?
Yes. When the minor turns 18, the PAN number remains the same but the card must be updated with new photographs, signature, and biometric details. The child must submit a PAN correction request through NSDL or UTIITSL with updated KYC documents. Without this update, the PAN card is not practically usable for adult financial transactions.
Which parent's income is the minor's income clubbed with?
Under Section 64(1A), the minor's income is clubbed with the income of the parent whose total income is higher before including the minor's income. If both parents have equal income, the clubbing happens with the father's income. In case the parents are separated, the income is clubbed with the parent who maintains the child.