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Everything About Income Certificate

Updated on July 15, 2024 , 110130 views

The primary objective the Indian government has is to manage the Economy and enhance the standard of the country to develop and thrive the livelihood of the residents. And to make it successfully happen, diversifying needs of residents have to be kept in mind for the benefit of all. To keep the residents contended, several schemes and initiatives have been introduced by both the state and the central government. However, when the population gets counted in billions, frauds ought to happen.

Income Certificate

In such a scenario, to identify who is eligible and who is faking can become a bit difficult for the authorities. Having said that, the government has started issuing different types of certificates upon the submission of viable proofs. Out of these, Income certificate is one such document that is meant to prove the income of an individual and assess the eligibility for varied schemes and initiatives. Let's find out more about the certificate.

What is an Income Certificate?

Just as the name suggests, an income certificate is one such document that is issued by an authority working under the state government. The purpose behind this certificate is to verify your annual income as well as your family's annual income from all sources. Generally, the authority that issues the certificate may vary from state to state. Usually, an income certificate can be obtained from a Tahsildar if you are residing in a village. But, if your town or city has a collector/ district magistrate, sub-divisional magistrate, revenue circle officers or any district authority, you can get this certificate directly from them.

How is Income Calculated?

While providing the income certificate, the income of the family is assessed. The family may consist of the applicant, parents, unmarried brothers or sisters, dependent sons or daughters, widowed daughters – everybody living together under the same roof.

Income signifies the regular income earned by the family members. The income of unmarried brothers, sisters, and daughters can be reckoned for calculating. But, the following income is not going to be included:

  • The income of widowed sister/daughter
  • Family pension
  • Terminal benefits
  • Festival allowance
  • Surrender leave salary

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Uses of an Income Certificate

Apart from proving the annual income of an individual, this certificate also acts as an evidence for the economically weaker section and measures their eligibility to several benefits and schemes granted by the state government in different domains, including:

  • Either free of cost or a concessional education quota reserved for people coming from an economically poor background
  • Scholarship provided by the government or institutions for the upliftment of the poor section
  • Concessional or free medical benefits, like subsidized medicines, treatments, and more
  • Concessional interest on loans through government entities
  • Relief to victims of natural disasters and calamities
  • Windows to claim government pension (if applicable)
  • Entitlement to flats, hostels, and other government accommodation

How to Obtain the Income Certificate?

A majority of states have an official website for these activities related to administration. And, you can obtain the income certificate online through such website. The procedure is quite simple:

  • Visit the respective online portal of your state or district
  • Create an account with a username and password
  • Now, search for ‘Apply for income certificate’ or a similar term
  • This will redirect you to an online application where you would have to add your personal details and fill-up the form

Documents Required for Income Certificate

  • Identity proof- Voter ID/ driving license/ ration card/ other
  • Aadhar card
  • Caste and income certificate - SC/OBC/ST certificate (if available)
  • Attested income proof - income certificate of parents/ Form 16/ Income Tax Return/ other
  • Attested address proof- electricity bill/ rent agreement/ utility bill/ other
  • Affidavit with the declaration that everything mentioned in the application is true

Conclusion

Once you have gathered all the documents, the application then would have to be either submitted at the office of the local district authority or would have to be uploaded online, as per the requirement. Also, the EWS certificate form may cost a nominal fee, and the certificate will be issued within the 10 to 15 days of the time period.

FAQs

1. What is the income certificate?

A: The income certificate is a government-issued document, which records your annual income. This certificate will include the annual income of an individual or family.

2. Who issues an income certificate?

A: The Income certificate is issued by the State Government authority such as District Magistrate Revenue Circle Officers, Sub-Divisional Magistrates, or other District Authorities. However, the government has to authorize them before they can provide income certificates. In villages, the Tahsildars can issue income certificates.

3. How is income calculated?

A: The income is calculated annually. You can apply for a personal income certificate or a family income certificate. When you calculate the income for the certificate, you will take into account only the following:

  • Salary earned by working in an organization.
  • Daily or weekly wages earned by laborers.
  • Profits earned from a business.
  • Commissions earned by working in an agency.

While calculating income, you should primarily consider those sources which are traditional sources of money for you.

4. What are the uses of income certificate?

A: Income certificates have multiple uses. If you belong to a financially weak background and are looking to get a scholarship, you will need to show your income certificate to become eligible for the scholarship. Similarly, to get medical benefits, concessional interests on loans, become eligible for various government facilities, you will need to produce an income certificate.

5. Can I apply for an income certificate online?

A: Yes, you can apply for an income certificate online. To do so, you will have to log in to your state government's official website, and you will be directed to the portal to apply for the income certificate.

6. What are the documents that I require to apply for an income certificate?

A: Some of the documents that you require for the income certificate are as follows:

  • Identity proof such as voter's ID card, driver's license, ration card, and other similar ID proof.
  • Aadhar card.
  • Attested income proofs.
  • Attested address proofs.

Along with the documents, you will have to declare that all of the documents are authentic. Also, sign an affidavit declaring all information mentioned in the application are true.

7. How long does it take for an income certificate to be issued?

A: It takes nearly 10 - 15 days for the income certificate to be issued.

8. Is an income certificate necessary to get scholarships?

A: Yes, the income certificate is necessary to get scholarships, primarily if the government runs the scholarship programs to uplift the poorer sections of society.

9. Should I show the income of all family members for an income certificate?

A: You will only have to show your family income if you are living with them. The family's income certificate becomes essential if there is more than one earning member in a single-family.

10. Can private companies issue an income certificate?

A: Designated state government authorities can only issue income certificates. No private company can issue income certificates.

11. Is family pension calculated in yearly income?

A: When you calculate the family income, you have to consider the income of all earning members of the family, i.e., brothers, sisters, parents, and anyone contributing to the family's annual income. Moreover, the family must also stay together. If your family stays apart, then you cannot consider their income in your family's income.

Also, you have to consider the annual income, and that includes the pension earned by the senior citizens in your family. Although pension is disbursed monthly, you will have to consider the pension earned annually by the family members. When you have all the separate incomes together, you can add it all up including all the pensions earned annually, to understand the annual income earned by your family.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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