Zerodha HUF (Hindu Undivided Family) account is a trading and investment account offered by Zerodha, a famous online brokerage firm in India. It is designed specifically for HUFs, which are legal entities recognized under Indian law consisting of a family with a common ancestor and a joint family property.

Opening a Zerodha HUF account allows a HUF to trade and invest in various financial instruments like stocks, mutual funds, derivatives, and more. The account is operated by Karta, who is the head of the HUF, and the investments made through the account belong to the HUF, not the individual members.

This type of account offers certain tax benefits to HUFs, such as the ability to claim deductions on investments made through the account. Additionally, it allows HUFs to separate their investments from their personal finances and manage them more efficiently.

What documents are required to open a Zerodha HUF account?

The documents required to open a Zerodha HUF account are mentioned below:

1. PAN Card of the HUF 

2. HUF address proof with seal and signature. A bank statement or passbook's most recent transaction copy can be used as address proof.

3. Pan Card of the Karta 

4. Address Proof of the Karta (can be any of the following documents):

5. PAN card of the co- parcener or member.

6. Bank Account Proof of HUF:

    a. Cancelled cheque leaf

    b. The most recent six months' bank statement or passbook for the HUF account.

    c. Receipt of the most recent year's Income Tax Return (ITR).

    d. Net worth certificates from a chartered accountant that includes the UDIN number.

7. Passport-size photograph of the Karta

8. If Karta is a female, include a hard copy of an additional self-declaration form with the other documents.

Submit each document’s copy with the seal and signature of the HUF to open the Zerodha HUF account.

Benefits of Zerodha HUF account

The benefits of the Zerodha HUF account are given below:

• Tax Benefits: HUF accounts offer certain tax benefits, such as the ability to claim deductions on investments made through the account.

• Separation of Finances: Having a separate account for HUF investments makes it easier to track and manage finances, and avoid confusion between personal and HUF investments.

• Access to Diverse Financial Products: HUF accounts allow access to a variety of financial products such as stocks, mutual funds, derivatives, and more, giving investors a range of options to diversify their portfolios.

• No Minimum Balance: Zerodha HUF accounts have no minimum balance requirements, making it easier for smaller HUFs to start investing.

• Low Brokerage Charges: Zerodha is known for its low brokerage charges, which can result in significant cost savings for HUF investors.

• Online Platform: Zerodha offers an online platform for trading and investing, making it convenient and accessible for HUF investors to manage their investments anywhere, anytime.

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