Get a PAN card when the child turns 18

Financial Planning | admin | August 2, 2011 at 6:37 am

Permanent Account Number (PAN) is issued by the Income Tax authorities and is a mandatory requirement for financial transactions. If investments are intended to be made in the name of minor children, the PAN card of the guardian is adequate. However, once the child attains the age of 18, he has to fulfil the PAN requirements. So an application for a PAN card should be made when the child turns 18 to ensure that minor accounts and folios are converted to regular, individual accounts. Before transactions are permitted in such accounts and folios, it is mandatory to provide proof of PAN.

Application

The application for a new PAN card can be filled online and can be downloaded at http://tinyurl.com-/8bkd4

Acknowledgement form

An acknowledgement form with a 15-digit code is generated on successful completion of online application. This should be printed and affixed with the photograph and signature of applicant.

Documents

The documentary proof of address and identification will be required in the name of the applicant. It should be sent along with the acknowledgement, supporting documents and demand draft, if used, to the NSDL office in Pune.

Payment and tracking

The charge for a new PAN is Rs 94. Payment can be made online or through demand draft.The status of the application can be tracked online by using the 15-digit acknowledgement code.

POINTS TO NOTE

Deadline: The documents should be sent to the processing unit within 15 days of the completion of the online process.

Subject matter: The 15-digit code with the words 'Application for PAN' should be written on the envelope while sending to the dispatch centre.

Tax: Acquiring a PAN does not mean that income tax has to be paid. A PAN holder can be a nonassessee, depending on his income or sources.