Open a HUF demat account online

A HUF demat account is a demat and trading account opened in the name of a Hindu Undivided Family (HUF). It allows your family to invest collectively using the HUF's PAN, bank account, and tax identity.

The Karta (head) of a Hindu Undivided Family can open a HUF demat account. The HUF must have its own PAN card, and the Karta must provide their personal PAN and Aadhaar for verification.

Yes, the HUF demat account opening process can be completed fully online on Zerodha. You'll need the HUF PAN, Karta's PAN and Aadhaar, and the HUF's bank account details to complete the application.

The account opening charge is ₹500. The Account Maintenance Charge (AMC) is ₹75 + 18% GST every three months. Brokerage is ₹20 per order across equity delivery, intraday, Futures, and Options (or 0.03% of turnover, whichever is lower).

Once all the details are submitted and verified, it typically takes 24-48 hours to activate the HUF demat account. The account details need to be registered with the exchanges and depositories.

An individual demat account is held in a person's name, while a HUF demat account is held in the name of the Hindu Undivided Family. The HUF is treated as a separate legal and tax entity with its own PAN, allowing the family to benefit from an additional set of tax deductions and exemptions.

Yes, the Karta can have both an individual demat account and a HUF demat account. Since the HUF is a separate legal entity with its own PAN, the investments and tax liabilities are treated independently.

Yes, a HUF demat account can be used to apply for IPOs. Since the HUF is a separate entity, it gives the family an additional chance of IPO allotment beyond individual applications.

A HUF is treated as a separate tax entity with its own PAN and gets its own basic exemption limit under the Income Tax Act. This means the income and capital gains from HUF investments are taxed separately from the individual members' income, effectively reducing the family's overall tax liability.