In India, as per the prevailing law, a minor is considered as someone who has not attained the age of 18.
Under the Liberalized Remittance Scheme, all citizens of the country, including minors, are permitted to make forex transactions and remit money up to USD 2, 50,000 without any restrictions per financial year for the granted purposes. Added to this, citizens can avail foreign exchange facility for the permitted purposes within the bound of above said USD 2, 50,000. In regard to travel abroad by an Indian Citizen, this bound is valid irrespective of the number of trips done outside India in a FY, same can be availed as long as the total forex transactions limit of the resident Indian to the extent of US$ 2, 50,000. RBI has put a limit of an upper cap of $3,000 per visit on purchase of foreign currency in the form of currency and coins. The balance amount can be carried in Multi Currency Cards and/or TCs.
In case of the remitter or purchaser being a minor, the LRS declaration form must be authenticated with a signature. In case a remitter or a purchaser is a minor, the LRS declaration form must be verified by the minor’s natural guardian. In this case, PAN Card of the natural guardian is compulsory. In case if a minor doesn’t have a PAN Card, then the minor can purchase or remit foreign currency or can do forex transactions only within the available limit of the natural guardian who has authenticated. But, a minor can avail full LRS limit of USD 2, 50,000 in case if she/he has a PAN Card.
Now the question is: Can a minor apply for a PAN Card?
Yes, a minor is permitted to apply for a PAN Card. As per the section 160 of the Income Tax Act, minors are also allowed to apply for the PAN card since there is no age limit requirement specified in the Act. A PAN card can be applied for children below 5 years and it can be used as permanent identity proof irrespective of change in the name or address.
This facility under FEMA Act for minors is not available to partnership firms, corporates, HUF, Trusts, etc.
