Understanding the Importance of PAN Cards for Children | 4-point explainer

A PAN (Permanent Account Number) card is one of the most essential documents in India, not just for adults but also for children. Many might wonder why a child would need a PAN card, especially since they do not pay taxes or have many financial responsibilities. However, having a PAN card for your child can simplify several processes, from opening bank accounts to investing in various schemes. In this explainer, we’ll address the significance of PAN cards for children, the legal age for obtaining one, and how parents can apply for it.

Why PAN Cards Matter for Children: PAN cards are essential for establishing identity in financial transactions. Although children do not pay taxes, having a PAN card allows them to partake in various financial activities, including opening bank accounts and investments.

Age Requirement for PAN Cards: According to Section 160 of the Income Tax Act, there is no minimum age limit for obtaining a PAN card. Parents can apply for their child's PAN card at any age, facilitating easier access to financial services.

Simplifying Financial Processes: A PAN card can significantly ease processes like opening a bank account or investing in financial schemes for children, eliminating unnecessary hassle.

Application Process: Parents or guardians must apply for a child's PAN card. The application process is straightforward and can often be completed online.