What is the eligibility age for a PAN card?

Section 160 of the Income Tax Act states there is no minimum age for PAN card application. PAN cards can be obtained for children under five, serving as permanent identification despite any name or residence changes.

What is the minimum age for applying for a PAN card for minors?

It is commonly believed that only individuals over 18 can apply for a PAN card. However, there is no age restriction, allowing minors, even under five, to apply.

Can I apply for a PAN Card before the age of 18?

Parents can apply for a PAN card on behalf of minors. There is no upper age limit, but a minor's PAN card does not include a photo or signature, so it cannot serve as valid ID.

Is a PAN Card necessary for opening a bank account?

PAN cards are required for most financial transactions. The Income Tax Department mandates linking PAN with your bank account, mainly for direct tax refund deposits.

Why is a PAN Card required?

PAN cards are vital for all financial activities, as they track the flow of money, facilitate tax payments and refunds, and serve as an identification proof.

PAN Card Eligibility Criteria - Documents Required for Indian and Foreign Citizens

A PAN card is mandatory for all individuals or non-individuals (including foreign citizens/entities) who earn taxable income in India. It is also a crucial document for various financial transactions. Therefore, it is important for every individual to apply for a PAN card. Continue reading to learn more about PAN Card Eligibility.

Who is Eligible to Apply for a PAN Card?

The minimum age to apply for a PAN card is 18 years. Any individual meeting the age requirement and falling into one of the following categories can apply for a PAN card:

Adults: Individuals above the age of 18 can apply for a PAN card by submitting a valid ID and proof of address.
Minors: Minors are also eligible to apply for a PAN card. In such cases, the parents or guardians can complete and submit the application on their behalf.
Foreign Citizens: Foreign nationals living in India for over 182 days during a financial year or engaging in financial transactions requiring a PAN are eligible to apply.
Entities: Various entities, including companies, firms, Hindu Undivided Families (HUFs), trusts, and associations, are also eligible to apply for a PAN card.

PAN Card Eligibility for Indian Citizens

Indian citizens, companies, and entities must use Form 49A to apply for a PAN card. Along with the necessary documents, applicants must meet the following eligibility criteria:

Individuals: The applicant must be an Indian citizen with valid identification, address, and date of birth proof.

Hindu Undivided Families (HUFs): An HUF is a separate legal entity, and its PAN card is required for financial transactions. The family head (Karta) can apply for the PAN card on behalf of the family by providing proof of identity, address, and date of birth, along with details of all coparceners. The Karta must also submit an affidavit with the information.

Minors: Minors can also apply for a PAN card, even if there is a misconception about the minimum age limit. A PAN card is required for those wishing to be a property nominee or make investments. Parents can sign Form 49A on behalf of their children, providing both their own proof and the minor's birth certificate. The minor’s Aadhaar number should also be included in the form.

Individuals with Mental Retardation: People with mental retardation are eligible to apply for a PAN card if necessary. Their legal representatives can apply on their behalf.

Limited Liability Partnership (LLP): LLPs need to submit a copy of their Certificate of Registration issued by the Registrar of LLPs when applying for a PAN card.

Trusts: Trusts can apply for a PAN card by submitting a trust deed and the certificate of registration issued by the charity commissioner.

Partnership Firms: Partnership firms must submit their certificate of registration from the Registrar of Firms or a copy of the partnership deed to apply for a PAN card.

Companies: A company can obtain a PAN card online. Before applying, businesses must register with the state Registrar of Companies and provide their registration number along with a copy of the Certificate of Registration issued by the Registrar of Companies.

Local Authorities: Local governments can also apply for a PAN by submitting an agreement copy.

Associations of Persons (AOP): Registered associations can apply for a PAN card by presenting a copy of their registration certificate.

Artificial Judicial Persons: These can apply for a PAN card by submitting a registration certificate or a government-issued document proving their identity and residence.

PAN Card Eligibility for Foreign Nationals

Foreign nationals/entities can use Form 49AA to apply for a PAN card. Below are the key eligibility criteria for obtaining a PAN card:

Foreign Nationals/Individuals: Foreigners intending to engage in financial transactions in India need to apply for a PAN card by submitting valid identification, address proof, and date of birth evidence.

Documents Needed for PAN Card Application

For Indian Citizens and Entities:

Proof of Identity: Passport/PIO card/OCI card, Attested TIN (Taxpayer Identification Number) or CIN (Citizenship Identification Number) from the Ministry of External Affairs, High Commission, or Indian Embassy. The applicant can also get this verified by the embassy of the country they reside in or an authorized officer of an Indian-scheduled bank branch abroad.
Proof of Address: Passport/PIO/OCI, Attested TIN (Taxpayer Identification Number) or CIN (Citizenship Identification Number) by the Ministry of External Affairs, High Commission, or Indian Embassy. This can also be authenticated by the embassy of the country where the applicant resides or by an authorized officer of an Indian-scheduled bank branch abroad, Bank Statement, Certificate of Registration, and Residential Certificate.

For Foreigners:

Foreign applicants must submit the following documents along with PAN Form 49AA:

A copy of the registration certificate issued by the foreign country, attested by the Ministry of External Affairs, High Commission, or Indian Embassy. Alternatively, the embassy of the country of residence or an authorized officer of an Indian-scheduled bank branch abroad can authenticate the document.
A copy of the Registration Certificate from India or clearance from Indian authorities to set up a branch office in India.

Advantages of Having a PAN Card

The PAN card is essential for the following purposes:

Filing income tax returns.
Serves as a valid proof of identity.
Opening a new bank account or depository account.
Applying for a credit card or loan from the bank.
Transacting in real estate worth Rs. 5 lakh or more.
Making restaurant payments above Rs. 25,000.
Depositing Rs. 50,000 or more in a bank account.
Buying or selling a vehicle (except for a two-wheeler).
Making investments worth Rs. 50,000 or more.