How can you open a Demat Account if you don't have proof of income

As you might know already, a demat account is a mandatory prerequisite for investing in the stock market. And so, if you’re interested in buying and selling shares and other securities, you would need to have a demat account for the same. 

That said, to open a demat account for yourself, you would have to submit certain documents with your depository participant (DP). Want to take a quick look at the documents for demat account opening? Continue reading. 

Documents required for demat account opening 

Here’s the list of documents that you would have to submit to start the demat account opening process. 

1. A duly filled demat account opening application. 
2. A copy of your PAN. 
3. A copy of your proof of identity - Aadhaar, voter’s ID, driving license, or passport. 
4. A copy of your proof of address - Aadhaar, voter’s ID, passport, or driving license.
5. A copy of your latest bank statement or a cancelled cheque leaf to serve as proof of your bank account. 
6. Two to three recent passport size photographs.
7. A copy of your proof of income - latest salary slips or Income Tax Returns (ITR). 

Is proof of income mandatory for opening a demat account?

As you can see from the above list of documents for demat account opening, you would have to produce a copy of your proof of income in the form of either your salary slips or your Income Tax Returns. 

That said, producing an income proof is not mandatory for demat account opening in India. Yes, you read that right. The income proof is only mandatory in cases where you intend to trade in derivatives of assets and in the currency markets. If you’re only going to participate in the equity segment, whether delivery or intraday, you’re not required to produce your proof of income. 

How to open a demat account without proof of income?

To open a demat account without proof of income, all that you have to do is make sure that you select only equity under the segments that you wish to trade, at the time of filling up the demat account opening application. Apart from this, you don’t have to do anything else. The process of opening a demat account will remain the same. 

If you happen to choose any other segments in addition to the equity segment, such as derivatives or currency, you will be asked to produce proof of income. So, keep that in mind when filling your demat account application.  

Conclusion

Now that you know how to open a demat account without a proof of income, go ahead and try it out for yourself. If you’re serious about demat account opening, then visit the website of Motilal Oswal right away. You can open one for yourself through a completely online process within just a few minutes.

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account 

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