HUF -  DEMAT OR DEPOSITORY Accounts

 

1.         It is possible for the HUF to open a Demat account also and the formalities are same as that fr opening a normal account except that in case of Demat account, the Bankers insists on a separate agreement for dealing in shares which is standard and printed form. Such Demat account can be operated either by the Karta or a combination of Karta and any other member.


2.         It is very important that the Demat Account which is opened in the name of HUF has either multiple signatories or has signed a declaration for appointment of nominees if the bank accepts nomination. This is in order to protect the interest of HUF in the event of a death of a member of the HUF who may have been the sole signatory in the account. In such a case, the bank may not allow any transaction in the account and the shares etc held in the account may get frozen until a valid succession certificate from the Court of law is produced.


3.         Another issue to be kept in mind while opening a Demat account in the name of HUF is to c1earli distinguish the title of the account so that it doesn’t resemble with that of an individual account in the same Bank. This is in view of the fact that SEBI has issued guidelines that the Demat Account has to be opened in the name of Natural persons and in case of HUF account, bankers generally open the account in the name of Karta and the type of the account is classified as HUF account.

MORE TOPICS ....

HUF -  Capital Gain Account
HUF -  Deduction from HUF Business Income
Income Derived From Funds Of HUF -Whether Individual Income Or Family Income
Gift by HUF to its Member
Gift To Minor Daughters Out Of HUF Property Prior To Marriage
Gift of HUF Property to Stranger or to any Person who is a Alien to HUF
Clubbing Provisions In Case Of Gifts Received By HUF
Applicability of Clubbing Provisions in case Karta of a HUF is a Partner in a Firm
Gifts received by HUF from Aliens / Strangers
HUF - Investment Options
Concept of Multiple HUF’s
Whether a Single Member can Constitute a HUF ?
Whether any Limit is placed on Number of Members of a HUF ?
Whether HUF- Can Be Constituted with only Female Members ?
Drawings / Expenses of HUF
Whether HUF can be a Shareholder / Subscriber to the MOA ( Memorandum Of Association)  of a Company
Whether HUF can be a Member of a Cooperative Society ?
Whether HUF can be a Partner ?
Can KARTA of a HUF enter into Partnership with another Member of HUF ?
Can There Be A Partnership Between Two HUFs?
Effect Of Death Of Karta In Case Of Partnership Firm
Whether HUF Can Be A Proprietor ?
Whether HUF Can Be A Trustee / Settler ?
HUF - Aliyasantana Law
HUF - Marumakkattayam Law
Power of KARTA in relation to HUF
Managing Members in relation to HUF
Whether a Female can become a Karta ?
Tax Planning TIPS for HUF
HUF - Meaning Of Important Term- “Ancestral”
HUF - Meaning Of Important Term- “Stridhan”
HUF - Meaning Of Important Term- “Mitakshara”
HUF - Meaning Of Important Term- “ Dayabhaga”
Meaning of the term ‘Coparcener’ of HUF
Power of ‘Coparcener’ of HUF
Difference between a ‘Coparcener’ and a ‘Member’
Whether Husband / Wife Can Constitute A HUF ?
HUF - RECOVERY PROVISIONS
‘Maintenance of Accounts’ by HUF
‘Audit of Accounts’ by HUF
Applicability Of The ‘Accounting Standards’ On HUF
Whether Merger Of Two HUF is Possible ?
Residential Status of the HUF under I.T. Act.1956
‘Coparcener Property’ under HUF
 
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