Income certificate
What is an Income Certificate?
An Income Certificate is a document issued by a government authority that shows a person’s or their family’s yearly income from all sources. The authority that issues the certificate differs by state.
Typically, Village Tehsildars handle this, but some states and union territories may have District Magistrates, Deputy Commissioners, Collectors, Revenue Circle Officers, Sub Divisional Magistrates, or other designated District Authorities who can issue the certificate.
Importance of an Income Certificate
An income certificate is an official document that proves how much money a person or their family earns. It’s essential for things like applying to schools, reducing taxes, accessing government services, or buying a home. Students can also use it to apply for scholarships or get discounts on tuition fees for college.
An income certificate can be used for a variety of purposes, which are described below:
- Assistance for ex-financial military.
- SC/ST can acquire a loan through several government programs by providing an income certificate.
- Tsunami, earthquakes, landslides, floods, cyclones, droughts, and other natural disasters victims are rewarded based on their incomes.
- Physically challenged people can receive assistance through prosthetic limbs, bicycles, and hearing aids.
- To take advantage of the numerous welfare measures regularly launched by the government.
How to Apply for an Income Certificate
The following are the processes to apply for an income certificate online.
- To apply for an income certificate, go to the website of the respective state or district.
- Create an account on the website.
- Create a unique username and password.
- Log in to your account and select ‘Apply for Income Certificate.’
- The online application form will open, and you must fill in the relevant details, such as:
- Name
- Age of the applicant
- Birthday Sex
Please upload the following documents:
- Any of the following: a driver’s license, voter ID, ration card, or another form of identification verification;
- an Aadhar card;
- A caste or religious certificate.
- Income tax return (ITR), salary certificate, Form 16, etc.
- In addition, the applicant must submit an affidavit confirming that the information on the application is accurate.
Documents Required for Income Certificate
The documents needed to get an income certificate can vary by state. Generally, the following documents are required:
- A voter ID card, Aadhaar card, driver’s licence, passport, or photo identity card issued by the central or state governments are all acceptable forms of identification.
- Address proof options include Aadhaar cards, passports, driver’s licence, voter ID cards, and any other approved document recognized as address evidence by the central government or a state government.
- A passport-sized colour photo is required.
- A Ration Card (BPL) or National Food Security Card must be given if applicable.
- The applicant or the head of the family must provide a written self-declaration.
You may need to provide additional documents, like proof of expenses, based on the state government’s or union territory’s specific requirements.
Calculation of Income for Income Certificate
When producing an income certificate, it is essential to calculate an individual’s or their family’s income.
This contains earnings from different sources such as:
- Salary
- Pensions
- Daily or weekly wages
- Business profits
- Consultancy fees
- Commissions, and
- Regular financial benefits like:
- Bonuses
- Interest
- Dividends
- Property rent
- Gains from asset sales, gifts, and inheritances.
The family income includes the incomes of all family members, including unmarried daughters and siblings who live together. To perform certain calculations:
- Salary Income: This includes base pay, Dearness Allowance (DA), special pay, and additional allowances. Excludes Travelling Allowance (TA), House Rent Allowance (HRA), and Special Work Honorarium.
- Business or Profession Income: Calculated using Income Tax Return (ITR) filings for family members working in business, professions, or consultation/agency work.
- Pension Income: The Pension Payment Order (PPO) determines the amount, excluding commutation.
- Daily Wage/Labour Income: Calculated according to the declaration supplied by daily labourers.
- Real Estate Income: Considers rent or brokerage charges received, deducting annual maintenance charges.
The income certificate displays the person or family’s overall financial situation from all sources.
Validity of the Income Certificate
Here are some essential details about the income certificate:
- The income certificate is valid for the financial year only.
- The certificate must be renewed every year to maintain its validity.
- You must also present the old certificate as proof when you update your income certificate.
Income certificate – Sample format
With that, we end our discussion on the Income certificate. If you have any questions, drop them in the comment section below.
FAQs
1. Do I need an Aadhaar card to apply for an income certificate?
Ans:Generally, any government-issued identity/address proof can be used to get an income certificate. However, applying for an income certificate requires an Aadhaar card.
2. Who can apply for an income certificate?
Ans: All individuals can apply for an income certificate, including paid employees, non-salaried individuals, business people, laborers, agents, widows, consultancy owners, etc.
3. How long does it take to get an income certificate?
Ans: It typically takes 10 to 15 days to receive an income certificate.
4. Can I download my income certificate online?
Ans: Yes, most states give the option to download an income certificate online.
