Last updated on September 18th, 2022 at 12:38 pm
How to open HUF Bank Account
As you all know Hindu Undivided Family is considered as a separate person under the Income Tax Act. HUF cannot use the bank account of its members (Karta and co-parceners) for transacting any business in its name. HUF is not a real person who can sign for itself so a rubber stamp in the name of HUF with the signing authority of Karta is a must-have.
Once a permanent account number is allotted to HUF, then the step forward would be to make a rubber stamp and open a bank account.
A rectangular shape rubber stamp needs to be made. It is a mandatory requirement for HUF to have a rubber stamp before entering into any transactions on behalf of HUF.
Note: As per the RBI circular, round stamps are not allowed/accepted for HUFs.
Specimen for a rubber stamp for HUF
Opening a bank account in the name of HUF is a must. HUF can open a bank account in a private or nationalized/public sector bank. There is no restriction on what type of bank account a HUF can open and operate. HUF can open either a savings account or a current account. Apart from these, HUF can also open a Demat account and a public provident fund account, etc.
Details/documents required for opening a HUF bank account
All the documents shall be duly stamped and self-attested for opening a bank account
⇒ A copy of the PAN card in the name of HUF
⇒ A copy of the PAN card of Karta/authorized signatory
⇒ Passport size photographs of the Karta/authorized signatory
⇒ Proof of Identity of the Karta/authorized signatory (e.g. PAN, Passport, Aadhar, driving license, voter’s ID card, etc) [ It is mandatory to link the Aadhaar of Karta with PAN of HUF]
⇒ Proof of address of the Karta/authorized signatory (e.g. Passport, Aadhar, driving license, voter’s ID card, electricity bill, etc)
⇒ Details such as the mobile number/phone number/ e-mail address of the Karta/authorized signatory are taken.
⇒ A declaration that states that Karta/authorized signatory will open and operate the bank account. This declaration will be signed by Karta and two or more major co-parceners of HUF. Generally, this declaration is included in the account opening form only by the banks.
The documentary requirements for opening a bank account may differ from bank to bank. But for most banks, the above list of documents should suffice the purpose.
Note: In most cases, banks do not permit any nomination to be added to a bank account of a HUF. Hence, it is advisable to have more than one signatory for operating the bank account.
Disclaimer: The above content is for general info purpose only and does not constitute professional advice. The author/ website will not be liable for any inaccurate / incomplete information and any reliance you place on the content is strictly at your risk.
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