HUF Demat Account
Whatever your investing style, we have a solution for you
For First Year
Opening Charges
Customers
Benefits of Opening an HUF Demat Account With Anand Rathi
Centralized Portfolio Access
Manage family assets and investments in one place. Track, trade, and manage your HUF investments anytime, anywhere. No more separate accounts, get joint ownership.
Family Tax Efficiency
Get a basic exemption of ₹4 lakhs on the total taxable income (as per the new tax regime). Also, avail of tax benefits by separating investments of family members under a HUF.
Research Advisory Support
Access research-backed insights from our team of analysts to make data-driven investment decisions.
Portfolio Access on your Fingertips
No need to search for investments. Import them into one place and view them with Portfolio 360.
Access to Multiple Markets
With multiple securities listed, diversify your portfolio and invest in equities , mutual funds, bonds, ETFs, and more.
Smooth Account Transfer
While Karta handles the entire family's investments, after his death, we ensure the next senior-most Karta (coparcener) can get the account access.
Process To Open A HUF Demat Account With Us
All you need is 4 Simple Steps to Open a Demat account for HUF with us.
1
Register the HUF
Verify Mobile, Email ID, and complete Karta's KYC details.
2
Complete KYC Process
Provide Karta's ID proof, HUF PAN, and supporting documents.
3
E-Sign via AADHAAR
Complete the final stage with your "E-sign" through Aadhar verification.
4
Start Trading & Investing
Log in with your CDSL Beneficiary ID and start trading in your Hindu Undivided Family account.
Documents Required To Open An HUF Demat Account
Submit these proofs and get your HUF Demat Account opened in minutes!
Pan Card of Karta & HUF
Address proof of Karta & HUF
HUF Stamp & List of Coparceners
Signature Coparcener on POA
HUF Demat Proof (Trading only)
Photograph of Karta
Bank Statement in the name of HUF
Deed of Declaration & Bank Pass Book in the name of HUF
Eligibility Criteria For Opening An HUF Demat Account
Before opening a Demat account for HUF, do check the eligibility criteria first.
The account can be opened in the name of a Hindu Undivided Family (HUF).
A Karta (head of family) must represent the HUF.
The HUF should have a valid PAN card and bank account in its name.
Members must be part of the same family line (as per Hindu Law).
(Note: In the absence of a male member, a female member can become Karta. But, again, its tax aspects may vary.)
FAQs
What is an HUF Demat Account?
A Hindu Undivided Family (HUF) is a joint Hindu family registered as a separate entity that comes under the Income Tax Act. This entity is usually created for tax purposes in India, inclusive of Buddhist, Sikh, and Jain families. With HUFs, you can own property, earn income, and claim tax benefits to reduce the overall tax liabilities. At Anand Rathi, we bring in the HUF Demat Account facility for such families. You can open your Hindu undivided family account and start investing!"
How can I trade HUF?
Just like any trading account, the Karta can buy, sell, or hold shares and other securities using the HUF Demat account here.
Can HUF invest in Mutual Funds?
Yes, for sure, HUFs can use their Hindu Undivided Family account to invest in Mutual funds . However, it will occur under the HUF's name, and the returns will be credited to the HUF account, not to the individual members.
What is a HUF deed?
A HUF deed is a legal document that officially creates a Hindu Undivided Family. It defines the Karta and the coparceners (family members) and is crucial for opening a Demat account for HUF.
Can we convert an existing individual Demat account into a HUF Demat account?
No, individual accounts cannot be directly converted. Only when the family is registered as a Hindu Undivided Family is it possible. You need to open a new HUF Demat account with the family's HUF PAN and HUF deed.
Which financial products can HUFs invest in?
HUFs can invest in the following financial instruments:
- Stocks and equities
- Mutual funds
- Bonds and government securities
- ETFs and other market instruments
How to transfer securities between my individual and HUF Demat accounts?
You can transfer securities between your individual and HUF Demat Accounts in two ways: Online and Offline.
- Online Transfer:
- Visit the CDSL or NSDL website.
- Sign up for either the 'Easiest' or 'Speed-e' facility.
- Fill in the details and submit the copy to your DP.
- With verification, you will receive your login details.
- After logging in, you can transfer the stocks.
- Offline: It involves getting a physical Delivery Instruction Slip (DIS) from your stockbroker
- Fill in the DIS form with the ISIN (International Securities Identification Number), Target client ID, and select the off-market transfer mode.
- Submit the filled DIS form to your DP to enable the transfer.
- Submit the filled DIS form to your DP.
- Once it is complete, you will receive your securities within 3-5 business days.
Who can be the members of HUF?
Usually, members of the same Hindu family line can become members of HUF anyway. With this, the Karta (head of the family) gets to manage the demat account. In contrast, the Coparceners are family members eligible to have a share in the HUF's property.
Things to Know About a HUF Demat Account
While we have explained the major features of the HUF demat account, it is also essential to be aware of these unknown rules.
- Only one HUF account can be opened per family.
- The Karta manages the account, but all coparceners are entitled to HUF assets.
- HUFs can be either resident or non-resident HUFs.
- Under the new tax regime, HUFs can avail a tax exemption of ₹4 lakh (earlier ₹2.5 lakh).
Difference between HUF and a normal demat account
A key difference between a HUF and a normal demat account lies in account management. In a demat account for HUF, there is a Karta present to manage everyone's (coparceners) assets and investments.
In the case of a normal demat account, you manage your investments directly. There is no separate account manager to handle them on your behalf.
Can we add more coparceners later?
Yes, you can add coparceners later on by submitting a request (to support) and updating the HUF deed.
Advantages of an HUF Demat Account
With a Hindu Undivided Family account, you can combine family investments under one account. This HUF, as a separate entity, provides a tax-efficient way to invest with minimal tax liabilities. Here are the benefits: