An income certificate is a certificate issued by a State Government that certifies a person's or their family's annual income from all sources. The authority responsible for issuing such a certificate differs by state. It is issued by the Village Administrative Officer and must be submitted to the State Government to be eligible for various schemes and subsidies such as eScholarship. You can produce an income certificate before a Central Government Department; the concerned authority to issue the income certificate is the respective Tahsildar. Several states and UTs (Union Territories) also have District Magistrate, Collector, Revenue Circle Collector, Sub Divisional Magistrates, Revenue Circle Officers, or other District Authorities appointed for this job. This certificate is also called an ‘EWS certificate' in some parts of the country, which stands for ‘Economically Weaker Section Certificate.'
Why is an income certificate needed?
An income certificate can be used to determine a person’s eligibility for various benefit schemes. Thus, the income certificate helps eliminate the disparities in the distribution of these schemes and ensures that only the most deserving and needy individuals can benefit from them. The following are some of the most prevalent reasons for obtaining an income certificate:
- To obtain a fee concession in an educational institution.
- To secure a seat in the quota allotted for the economically and socially backward classes in professional colleges.
- To obtain various pensions such as Widow Pension, Pension for Cancer Patients, Old Age Pension, Agricultural Laborers Pension, Leprosy Patients, Pension for Tuberculosis Patients, and more.
- Medical benefits such as free or reduced-cost treatment, financial aid to mothers who give birth to a girl child, subsidised drugs, and so on are available.
- For availing the scholarships provided by some institutions/governments to uplift the low-income families.
- Obtaining loans at a reduced interest rate from the respective government employers.
- To make financial assistance available to the ex-servicemen.
- Assisting victims of various natural catastrophes and tragedies.
- Claiming entitlement to Government flats, dormitories, or other forms of government housing
- To obtain free rations, etc.
- To obtain artificial limbs, bicycles, and other items for physically disabled people.
Calculation of income for the certificate
A family's income would be assessed with an income certificate. The applicant, their parents, dependent sons and daughters (unmarried), and brothers and sisters (unmarried), living together in the same residence, and widowed daughters who are truly dependent on the family would make up the family.
Income would include the actual earnings of all the family members who live together. For estimating family income, unmarried brothers, daughters, and sisters might be accounted for. However, the following is not included:
- Festival allowance.
- The earnings of a daughter or sister who is a widow.
- Terminal benefits.
- Family pension.
- Surrender leave salary.
The inclusions are:
Income from Salary: Salary income excluding HRA (House Rent Allowance), Deputation pay, Allowances, Special pay, and other benefits are used to calculate total income. P.T.A., T.A. (Travelling Allowance) honoraria for special labour, and so on are deducted from salary income. The D.A. (Dearness Allowance) is included in the total income calculation.
Income from Business: This can be determined based on the income tax return filed. In the event of non-assessment, the Income Certificate is given based on a declaration filed by the individuals concerned. In the event of non-assessment, the applicant's declaration is used to provide the Income Certificate.
Income from Pension: For the Income Certificate, the payment pension order serves as the foundation for calculating the pension.
Income from Property: The earnings from the property include the income from any products such as food crops, coconuts, among other things. The value of improvements on the landed property is calculated using the standards applied for land acquisition.
Rental Income: After deducting the annual maintenance expenses, the income from the rental earnings is computed.
Also Read: Step-by-Step Guide for E-Verifying Your Income Tax Return
Income Certificate Application Process
Income certificates can be applied both offline and online. The Income Certificate online application is a straightforward approach introduced to save individuals from the hassles of physically visiting the district magistrate/revenue office only to obtain the application of income certificate form. The majority of Indian states have a separate website for income certification.
Online application procedure for Income Certificate
Here is how to get income certificate online:
- Visit the state's or district's official web portal to apply for an income certificate. For example, in Karnataka, you have to visit the website of Nadakacheri.
- Create an account on the portal with a username and password that is secured with your mobile number.
- Sign in to your newly formed account and click the "Apply for income certificate" option.
- You will be directed to the online application page, where you must enter your personal information, such as:
- Name
- DOB (Date of Birth) or Age
- Address as mentioned in your address proof submitted (including the district, taluka, village, etc.)
- Gender
- Aadhar card – It is required in most states since it can uniquely identify a person and prevent fraudulent claims.
- ID Proof Details (Ration card/Driving license/voter’s id)
- Religion
- Caste/Sub-caste (OBC/SC/ST)
- Income information based on the income tax return, Form 16 from the employer, salary certificate, or other income proofs
On Karnataka’s Nadakacheri website, you can fill in the following information as per shown in the example below:
- After filling out the information mentioned above, you are required to provide legitimate documents to support your address proof, ID proof, income proof, and other documents as considered essential.
- Press the ‘Save' button.
- Choose your desired payment method and make the required payment.
- Following that, an acknowledgement slip with an acknowledgement number is generated. This number can be used to follow the status of your online income certificate application.
Documents required for Income Certificate
Mandatory
- Salary Statements for last 12 months from DDO (Government Employee) Or
- Certificate from DAO (District Agriculture Officer), DVO (District Veterinary Officer), etc. (For individuals having income from Agriculture, Veterinary Sources, Horticulture) Or
- Certificate from BDO (For Rural areas) Or
- IT Return/ Form 16 ( For Non-Government Employee)
Optional
Address Proof: Attested copy of Voter's ID Card/ LPC/Adhaar Card/Land Allotment Passbook/LPG Card/Ration Card/Driver’s License
Also Read: How To Check Income Tax Refund Status Online For 2020-21
Offline Application Procedure for Income Certificate
If your state district's infrastructure does not permit online uploading of documents, you will need to send hard copies of the same to the office of your responsible district authority. The application fee is minimal and may differ from one state to the next. Some states may also need you to submit an affidavit confirming that all of the information in the application is correct to the best of your knowledge and belief. Normally, the income certificate is issued within 10 to 15 official days.
Income Certificate Application Status
To track your income certificate application online, follow the steps outlined below:
- Go to your state/official district's web portal.
- Log in to your account using the username and password you created before
- Click on the 'Get Status' button
- Enter the application/acknowledgement number that appears on your acknowledgement slip.
- When you press the "Submit" button, the status of your application is displayed on the screen.
Format of Income Certificate
The income certificate format may differ between states and union territories. However, a sample format is shown below:
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Income Certificate This is to certify that Mr./Mrs./_____(candidate) is a resident of ___________ Village/Town________District/Division_________in the State of _____. As per the declaration/records, his/her annual family income from all sources for the financial year 20__ is Rs. (in words_______) only. Place: Date: Signature (with official seal) |
Some Final Words
When issued, an income certificate is valid for a year for the purposes of assessing a family’s annual income from various sources. The income certificate's validity as income proof is determined by the financial year specified in the document. The previous certificate may be required as important documentation proof to issue an updated annual income certificate. However, The certificate would be revoked if the certificate was obtained unlawfully, i.e. by knowingly suppressing actual income or willfully providing fictitious income.
