Difference Between Minor and Major PAN Card

Turning 18? It is time to update your minor PAN card to a major.
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Difference Between Minor and Major PAN Card
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3 mins read
13-Jan-2025

A PAN (Permanent Account Number) card plays a significant role in financial transactions and identification for individuals of all ages, including minors. Although minors typically do not engage in extensive financial activities, having a PAN card can facilitate various essential processes. Here are some key points to consider regarding the importance of PAN cards for minors:

  • Financial identity establishment: A PAN card for minors helps establish their financial identity early on, making it easier for parents to manage investments, savings accounts, or mutual funds in their child’s name.
  • Tax benefits: Minors can have income in the form of interest from savings accounts or investments. A PAN card allows for the proper filing of taxes and claiming deductions, which can be beneficial for families.
  • Future planning: Obtaining a PAN card for minors is a proactive approach to ensure they have the necessary documentation when they reach adulthood. This can help in smoother transitions when they need a PAN card for various financial and legal activities.
  • Educational scholarships: Many scholarship programs require a PAN card as part of their documentation process. Having one in advance can make it easier for minors to apply for such opportunities.

For more information on how to obtain a PAN card for minors, you can explore dedicated resources available online.

Minor vs major PAN card - Knowing the difference

A minor PAN card is issued to individuals below the age of 18 and has specific restrictions on its usage. This card is typically linked to the parent’s or guardian’s PAN. In contrast, a major PAN card is issued once the individual turns 18, allowing for broader financial activities, including applying for loans, credit cards, and investments. The transition from a minor PAN card to a major one is essential as it unlocks opportunities for greater financial independence and responsibility, paving the way for a smoother financial journey in adulthood.

The benefits of upgrading to a major PAN card

Upgrading from a minor to a major PAN card offers numerous advantages, including:

1. Establishing financial identity

A major PAN card solidifies an individual's financial identity, making it easier to open bank accounts, apply for loans, and engage in investments.

2. Freedom in financial transactions

With a major PAN card, individuals gain the autonomy to carry out financial transactions without parental consent, allowing them to manage their finances independently.

3. Legal compliance and documentation harmony

Having a major PAN card ensures compliance with legal requirements for tax filings and financial activities, streamlining documentation processes and maintaining harmony in financial records.

4. Building a credit score

A major PAN card enables individuals to start building their credit score. A good credit score is crucial for future loans, credit cards, and even rental agreements, contributing to long-term financial health.

How do you update your minor PAN card when you turn 18?

When turning 18, it’s essential to update your minor PAN card to reflect your status as a major. Here are the steps to follow:

  1. Visit the official PAN card website: Access the relevant portal to initiate the PAN card update process.
  1. Fill out the application form: Complete the application form for a major PAN card, ensuring that all details are accurate.
  1. Submit necessary documents: Along with the application, submit valid identification proof and any required documents.
  1. Payment of fees: Pay the nominal fee for the processing of the new PAN card.
  1. Receive the new PAN card: Upon approval, you will receive your major PAN card, which you can use for various financial activities.

For a comprehensive understanding of the differences between minor and major PAN cards, refer to the insights available online.

Conclusion

In summary, obtaining a PAN card is crucial for minors as it establishes their financial identity, enabling future transactions and potential tax benefits. The transition from a minor to a major PAN card unlocks opportunities for greater financial independence, allowing young adults to engage in financial activities and build their credit score. Understanding the differences between minor and major PAN cards is essential, and ensuring timely updates as they age is vital for compliance and personal financial management. The journey from a minor to a major PAN card is a significant step towards financial responsibility and empowerment.

Frequently asked questions

Can we convert a minor PAN card to major?
Yes, a minor PAN card can be converted to a major PAN card once the individual turns 18. This involves submitting a correction application along with necessary documents, including a recent photograph, through the NSDL or Protean website or at authorised centres.

How to check if your PAN card is minor or major?
To check if your PAN card is a minor or major card, verify the holder’s age. If the card was issued to someone under 18 years, it’s a minor PAN. You can also check the details on the NSDL website by entering your PAN.

What is the difference between a minor account and a major account?
A minor account is held by individuals under 18, requiring a guardian's supervision. In contrast, a major account is for individuals 18 and older, allowing independent financial activities. The major account holder has full control and responsibility over their financial transactions.

What is the benefit of a minor PAN card?

A minor PAN card is crucial for various financial transactions, including investments in mutual funds, stocks, and other financial instruments. It enables minors to participate in the financial market and establish a credit history early on.

How does a minor PAN card differ from a regular PAN card?

A minor PAN card remains valid until the minor attains the age of 18. After reaching adulthood, the minor needs to apply for a regular PAN card.

Can minors open bank accounts with their PAN cards?

Yes, minors can open bank accounts with their PAN cards. This facilitates smoother financial transactions and helps them manage their finances independently.

Are minors required to link their Aadhaar with their PAN?

Yes, minors are also required to link their Aadhaar with their PAN cards. This is in compliance with government regulations and helps maintain a unified database for financial transactions.

Should the name on PAN and Aadhaar cards match?

Yes, the name on both PAN and Aadhaar cards should match exactly. Any discrepancies can lead to complications in various financial and legal procedures.

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