Is a PAN card necessary for minors if they have a bank account?

PAN card

Last Updated on March 12, 2024 by admin

A PAN card is a unique number assigned by the Indian government to each taxpayer. It is essential for filing taxes and conducting financial transactions in India. However, the question remains, is a PAN card necessary for minors if they have a bank account? Let’s explore this in detail.

What is a PAN card?

A PAN card or Permanent Account Number is a 10-digit alphanumeric code issued by the Income Tax Department. It is a unique identification number that enables the government to keep track of all financial transactions of an individual or entity. PAN cards are essential for all taxpayers, including individuals, companies, and partnerships. They must also open a bank account, apply for a credit card, invest in stocks and mutual funds, and more.

Why is a PAN card necessary for minors with a bank account?

If a minor has a bank account, providing the PAN details to the bank is mandatory. Any interest earned on the minor’s bank account is subject to tax. 

If the minor’s income exceeds the basic exemption limit, they will have to file an income tax return, which requires a PAN card. Additionally, the bank may ask for the PAN card of the parent or guardian who operates the account on behalf of the minor to comply with the tax regulations.

Process of opening a savings account for a minor

Opening a savings account for a minor is similar to opening a savings account for an adult, with a few additional requirements. Here are the general steps involved in opening a savings account for a minor in India:

  • Fill out the application form: Obtain and fill out the account opening form. The form will require details such as the minor’s name, date of birth, parent or guardian’s name, address, and contact details.
  • Provide identity and address proof documents: Along with the account opening form, you must submit documents such as the minor’s birth certificate, Aadhaar, passport, or school ID card. The parent or guardian will also have to provide their identity proof and address proof documents.
  • Submit photographs: You must submit passport-size photographs of the minor and the parent or guardian.
  • Make an initial deposit: Depending on the bank’s requirements, you may need an initial deposit to activate the account.
  • Provide PAN card details: As mentioned earlier, a PAN card may be required to open a savings account for a minor. The bank may also ask for the PAN card details of the parent or guardian who operates the account on behalf of the minor.
  • Sign the nomination form: As a precautionary measure, it is advisable to sign the nomination form, which determines who will receive the money in the event of the minor’s demise.


A PAN card is necessary for minors if they have a bank account in India, as the interest earned on the account is taxable income. It makes the process of tracking financial transactions easier and also helps in reporting tax liability. It is important to start saving early in life and a bank account for minors helps with that.

Apart from that, if you are interested to know about zero annual fee credit cards then visit our Finance category.

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Sophia Anderson
Sophia Anderson is a finance writer and blogger with a passion for helping people improve their financial literacy. With over 5 years of experience in the finance industry, Sophia has worked with individuals, families, and small businesses to provide financial advice and guidance. Her expertise includes budgeting, saving, credit management, and debt reduction. Sophia is dedicated to breaking down complex financial concepts into easy-to-understand language and empowering her readers to make smart financial decisions. She is a frequent contributor to financial publications and has written extensively on topics such as personal finance, investing, and financial planning. Sophia's mission is to help people take control of their finances and achieve financial security and freedom. When she's not writing, Sophia enjoys hiking, practicing yoga, and reading personal finance books.