What are the different account types RKSV allows
This article goes into the different types of accounts an RKSV customer can open, including Individual and HUF accounts. In a nutshell, a client can only open an individual account or a HUF account. As of now, we do not allow company, corporate, or partnership types of accounts.
Let’s break down the different types of account that are offered by RKSV
These are the most common accounts. In essence, it is for the common user who is not looking to open up a HUF, NRI, or Partnership account.
The account opening procedure for an individual account is very simple. All one needs to do is follow the instructions on the Open an Account page. In less than 10 minutes, you can get started with the process of opening your account!
This stands for “Hindu United Family” account. This is a special type of account, and RKSV allows for HUF accounts to be opened.
HUF stands for “Hindu United Family”. In order to meet the criteria, the HUF is a family with a husband, wife, and children (with the children’s spouses) living together. With an HUF account, tax benefits can be availed by the account holder.
In order to open an account as a HUF account, you can go ahead and fill out the regular trading account form. However, there is a section for “HUF”. In it, it states that you need to provide the following:
- PAN of HUF
- Deed of deceleration of HUF / List of coparceners
- Bank pass-book/bank statement in the name of HUF
- Photograph, POI, POA, PAN or Karta
The Karta, technically speaking, is the “senior most male head” of the family. His signature is required for every transaction.
The benefits of an HUF account is that there are tremendous tax savings, among aothers:
- Since the account is equivalent to an individual’s account there are various tax benefits.
- According to the Income Tax act, tax rebates and deductions can be availed under sections 80C, 88 and 80L for an HUF account.
- Gifts collected up to a worth of Rs 50,000 will be tax free.
RKSV does allow Partnership accounts is certain occasions. To see whether or not you are eligible for a partnership account, please get in touch with our sales team and we will assist you!
For one looking to trade MCX/Commodities, they can only open an individual account. To learn more, visit our account opening page.
What about Corporate, FII, and other types of accounts?
As of now, we only allow Individual and HUF account types. However, Partnership and occasionally, corporate accounts are opened. We recommend that you get in touch with our sales team if you are looking to open up one of these types of accounts.
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