How To Apply For An Income Certificate?
An income certificate is a type of document that gives evidence of one’s income earned from different sources. This document is used for different civic welfare schemes such as to avail scholarships in institutes, LPG subsidies, pension schemes, etc. The certificate certifies the individual or a family’s income status.
In this article, you will know how to apply for an Income certificate. Before we jump into the procedure to apply for an income certificate, let’s understand about income certificates.
What is an income certificate?
It is a Government document, issued by the Indian State Government. It certifies the annual income of the person or his family. The income certificate is usually issued by the Tehsildar of a particular state and the authorized bodies of Union Territory like the District Magistrate, Deputy Commissioner, Sub-Divosional Magistrate, Collector, and Revenue Circle Officers issue the income certificate.
Benefits of Income Certificate
If you have the Income Certificate then you are eligible for different Government schemes:-
- For students, who are from economically poorer backgrounds usually have a quota reserved in educational institutes. Income certificates help to provide admission in government colleges. It can be either free of cost or with a permit. Those students who are not from economically weaker backgrounds but can’t bear the expense of any of the courses can take educational loans.
- Some institutes and governments also provide scholarships to uplift the poor.
- This certificate helps to provide medical treatment. It can be either free of cost or with a permit. It includes subsidized medicines and financial assistance to girl child mothers, etc.
- This certificate provides relief to victims of different natural calamities & disasters.
- Income certificate helps to provide different kinds of pension schemes such as widows, old age pensions, agricultural labor pensions, employees, etc.
- This Certificate helps to provide a free ration.
- It helps to apply for various government jobs available for reserved categories.
- It helps to provide government accommodation like Hostels, flats, etc.
The income covered under the income certificate
The income of a person or family will be calculated while issuing the income certificate. A family income will be calculated based on the earning members of the family. It will include unmarried daughters, and unmarried brothers/ sisters who are living together/ share the same roof.
The earnings of family members will be calculated based on their:-
- Different pension
- Profit earned from business
- Bonus of employees
- Agency work commission
- Consultancy charges
- Deposit interest
- Profit from stock and share market
- Earning from property rent
- Gains on the sale of assets
- Gifts and inheritance
The income of a person or his family from all earning sources for issuing income certificates will be calculated as follows:
Except the Traveling Allowance, House Rent Allowance, and Honorarium received for special work, all other allowances are considered for the calculation of Income.
Income earned from business or profession
Income earned from a business or any profession of a person is calculated according to Income Tax Return (ITR) filing.
Income from Pension
To calculate the income from the pension of a person the pension payment order is a main criterion.
Income from rent
Rent and broker charges excluding maintenance charges received from real estate is also considered an income.
The process to apply for an Income Certificate
Step 1:- Go to the official website of a particular state
Step 2:- Go to Create account
Step 3:- Login to the website and look for “apply for income certificate”
Step 4:- Fill out the form with the details required
Step 5:- Submit the documents required
After submitting the form, the certificate will be issued within 10-15 days.
Documents required to apply for an income certificate
Documents required for applying income certificate are:-
- Identification proof (Aadhaar card, PAN card, and Driving license)
- Passport size photograph
- Ration card
- Address proof (Aadhaar card, PAN card, and Driving license)
- Declaration form
Validity of the Income certificate
The validity of the income certificate is for the financial year mentioned in the certificate. Every financial year you will have to renew the income certificate. After renewing your income certificate, also hold your old income certificate because it is required for the proof of the issue of an updated income certificate.
Frequently asked questions:-
Whom to Contact to Apply for an Income Certificate?
As I mentioned above, the income certificate is issued by the State Government of a particular state or Union Territory. So, you can contact your nearby Tehsildar to apply for an income certificate.
Are the Income certificate and EWS certificate the same?
No, the EWS (Economically Weaker Section) is an income certificate that is only issued to economically weaker backgrounds. Meanwhile, the income certificate does not present the caste of the person. It only certifies the family income. To get the EWS certificate, you should have an income certificate.
Can NRI apply for an income certificate?
No, in India an Income certificate is issued only to Indian residents.
Can I use ITR as an Income certificate?
Those who do not work as regular employees or are salaried can use ITR as an Income certificate in some cases.