Opening an HUF account hasn\u2019t always been the easiest process. It usually involved filling out physical forms, sending documents by courier, and waiting 5\u20137 business days for the account to be activated.<\/p>\n
HUF (Hindu Undivided Family) accounts at Zerodha can now be opened entirely online, with most accounts activated within a day. We\u2019ve also removed the account opening charges for online HUF accounts.<\/p>\n
If your family already has an HUF, or you\u2019re considering setting one up, here\u2019s what you need to know.<\/p>\n
A Hindu Undivided Family (HUF) is a distinct legal entity recognised under the Income Tax Act. It is separate from its individual members and has its own PAN, files its own tax returns, and can hold assets and investments in its own name.<\/p>\n
An HUF is governed by Hindu law and is available to Hindu, Jain, Sikh, and Buddhist families.<\/p>\n
In principle, an HUF comes into existence automatically when a family has at least two members. In practice, however, a HUF deed is usually created to formally document the structure, after which a PAN is obtained in the HUF\u2019s name. This allows the HUF to open bank accounts, hold investments, and file taxes.<\/p>\n
Because an HUF is treated as a separate taxpayer, it gets its own tax slab, deductions, and exemptions, in addition to what individual family members claim in their personal returns.<\/p>\n
Some examples:<\/p>\n
One important point to keep in mind is that assets transferred by members to the HUF can sometimes trigger clubbing provisions, so HUF structures are usually most useful when the assets originate within the HUF itself, such as ancestral property or family business income.<\/p>\n
You can open a Hindu Undivided Family (HUF) account at Zerodha entirely online.\u00a0<\/p>\n
There are no physical forms, no couriered documents, and no branch visits. Verification and document signing happen online, and the account is typically activated within a day.<\/p>\n
To open an HUF account, you\u2019ll need:<\/p>\n
The entire process can be completed online at: zerodha.com\/open-account\/huf\/<\/a><\/p>\n If the Karta’s Aadhaar isn’t linked to their mobile number, or if the Karta is an NRI, the\u00a0HUF account can be opened offline<\/a>.<\/p>\n If you don\u2019t already have an HUF set up, you\u2019ll first need to create an HUF deed and apply for a PAN in the HUF\u2019s name. Once that is done, the Zerodha account opening process is fully online. You can watch this video for a walkthrough:<\/p>\n