HUF MEANS (HINDUS UNDIVIDED FAMILY)..
Advantages of opening a trading/demat account which is a HUF
1. Karta manages the HUF account on behalf of the Co-parceners.
2. Under the Income Tax, an HUF is a separate entity for the purpose of income tax return. HUF will aslo gain from the tax slab structure of computing income tax.3. According to IT act, tax rebates and deductions can be availed under sections 80C, 88 and 80L for HUF account.
4. In case of HUF, shares can be transferred in the name of the Karta.
5. Corpus can be divided only on agreement of every coparcener of the family.
6. Every member of the family can deposit their income in the common corpus.
7. Corpus can be used for investment in tax free money instruments.
1.Duly filled Trading/Trading & Demat/Commodity form with photograph of Karta affixed and signed across.
2. Pan Card copy of the HUF.
3. Bank Passbook/Bank Statement of HUF indicating its existence.
4. Pan Card copy & Address Proof of Karta.
5. Declaration to be given by Karta & all major co parceners of the HUF.
6. HUF Declaration for Demat account.
Karta should sign the Account Opening Form and other documents under the stamp of HUF.
All KYC documents to be attested by the Karta.