How to Open a HUF Account: 4-Step Walkthrough

Step 1: Create the HUF Deed

Draft an HUF deed on stamp paper (Rs 100-500 depending on state). The deed should state: the name of the Karta (head of family, usually the eldest male), names of all coparceners (lineal descendants), and the purpose of forming the HUF. Get it notarized.

Step 2: Apply for PAN

Apply for a PAN card in the name of the HUF through NSDL or UTIITSL. Select entity type as 'Hindu Undivided Family.' The Karta's details will be required. Processing takes 15-20 days.

Step 3: Open a Bank Account

Open a savings/current account in the HUF's name with the HUF PAN. Most major banks support HUF accounts. You'll need: HUF deed, HUF PAN card, Karta's KYC documents, and address proof.

Step 4: Fund the HUF

The HUF can receive funds through: ancestral property income, gifts from members (not treated as income), partial partition proceeds, or income from HUF investments. Note: gifting your salary or personal income to HUF triggers clubbing provisions.

Costs Involved