HUF Demat Account

A HUF (Hindu Undivided Family) Demat Account is a Demat account opened in the name of a Hindu Undivided Family — a unique legal entity under Indian tax law consisting of all persons lineally descended from a common ancestor, including their wives and unmarried daughters. A HUF is treated as a separate taxable entity by the Indian Income Tax Act, with its own PAN card, and can invest in stocks, mutual funds, bonds, ETFs, and other securities independently of the individual family members. The HUF Demat account is operated by the Karta — the senior-most male member of the family — who acts as the authorised signatory. HUF accounts can benefit from the basic income tax exemption limit applicable to HUFs (₹2.5 lakh per year), enabling tax-efficient investment planning for families with substantial investable assets. Opening a HUF Demat account requires the HUF's PAN card, Karta's KYC documents, and a declaration of HUF members.