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Income Certificate Online – Procedure & Format

Updated on :  

08 min read.

The main aim of our Government is to manage the country and keep it progressing. The varied needs of the people as a whole should be kept in mind and a ‘push’ needs to be given wherever necessary. Various schemes have been launched by both the State and Central Governments that the citizens can benefit from. However, in a country where the population is in billions, it is difficult to identify who is genuinely eligible for what type of benefit.

Therefore, the government issues various types of certifications on the submission of valid proofs. One such type of certification is the Income Certificate. It can be used to take benefit of those schemes where eligibility is determined based on the annual income of the person or his/her family.

In this article, we shall look at the following aspects with regards to the Income Certificate:

What is an Income Certificate?

An Income Certificate is a document issued by an authority under the State Government certifying the annual income of a person or his family from all sources. The actual authority that issues such a certificate varies from state to state. It is usually the Village Tehsildars that issue the certificate but many states and union territories also have District Magistrate, Deputy Commissioner, Collector, Revenue Circle Officers, Sub Divisional Magistrates or other District Authorities appointed for this purpose.

Format of Income Certificate

Income certificate – Sample format

Calculation of Income for Income Certificate

The income of the person or family needs to be calculated while issuing the income certificate. Income means financial gain or regular earning by a person working for an organisation, laboured person or individuals doing business. The income certificate can be issued certifying the income of an individual or his/her family.

The income of earning members of a family, including unmarried daughters, unmarried brothers and sisters living together will be included while calculating the family income. The earnings of family members include the following:

  • Salary of members working in organisations
  • Various pension 
  • Daily/weekly wage of a labourer 
  • Profits from business 
  • Charges of consultancy 
  • Commissions of agency work 
  • Any kind of regular financial benefits received, such as
    • Employee bonus 
    • Deposit interest 
    • Dividends from share and stock markets 
    • Property rent 
    • Gains on the sale of assets 
    • Gifts and inheritances 

The income of an individual / individual members of a family from all sources for issuing income certificate will be calculated as follows:

  • Income from salary: The basic pay, Dearness Allowance (DA), special pay and other allowances, if any, are considered for the calculation of the income of a salaried member. The Travelling Allowance (TA), House Rent Allowance (HRA) and Honorarium received for special work are excluded from the salary income.
  • Income from business or profession: Business income, income from any profession or consultation/agency work of a family member is calculated on the basis of Income Tax Return (ITR) filing. If the member is a non-assessee, income will be considered on the declaration of the assessee.
  • Income from pension: The Pension Payment Order (PPO) is the main criteria to calculate income from the pension of a family member. However, it excludes commutation amounts.
  • Income from daily wage/labour: The declaration from the daily labourer will be considered for calculating the daily/monthly wage income.
  • Income from real estate: The rent received or brokerage charges received by a family member from real estate will be considered as income. However, the income will be after deducting annual maintenance charges.

Uses of Income Certificate

As mentioned earlier, the income certificate acts as a proof of eligibility to various schemes and benefits granted by the State Government in various fields. These fields include but are not limited to:

  • Educational institutions that usually have a quota reserved for people from economically poorer backgrounds. This certificate helps them secure admission either free of cost or at a concession.
  • Scholarships offered by some institutions/governments targeting the upliftment of the poor.
  • Availment of medical benefits like free or concessional treatment, subsidised medicines, financial assistance to mothers who give birth to girl child, etc.
  • Obtaining loans from the respective government employers at a concessional rate of interest.
  • Providing relief to victims of various natural calamities and disasters.
  • Getting different kinds of pension such as widows, old age pension, agricultural labourers pension, etc.
  • Providing financial aid available to the Ex-Servicemen.
  • Getting free ration, etc.
  • Applying for government jobs available to specific reserved categories.
  • Claiming entitlement to hostels, flats or other such government accommodation.

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Procedure to obtain the Income Certificate

Most states have a dedicated website for such administration related activities through which the certificate can be applied for. The procedure would be:

  • Go to the respective State / District online portal to apply for the certificate.
  • Register by creating an account on the website with a unique username and password secured with the mobile number.
  • Login to your account and look for ‘Apply for income certificate’ or such similar terms.
  • This will open up an online application where your personal details need to be filled or uploaded. Such details include:
    • Name, age / DOB, address (including district / taluka / village), sex, etc.
    • Ration card / Driving License / Voter’s ID or such other ID proof.
    • Aadhar card – Nowadays, the Aadhar number is compulsory since it is used to uniquely identify a person and prevent fraudulent claims.
    • Religion, caste and sub-caste.
    • Whether SC / ST / OBC and details therein.
    • Parent income certificate, Income tax return, Form 16 by employer, salary certificate, etc as proof of income. (May require attestation by Gazetted Government Officers)
    • Rent, maintenance, electricity, telephone or any other utility bills as proof of address. (May require attestation by Gazetted Government Officers)
    • Affidavit declaring that all particulars stated in the application are true.

After gathering all the documents, depending on the infrastructure offered by the respective state, the application has to be either submitted at the local district authority’s office or uploaded online. The application would cost a nominal fee depending on the state it is applied in. The certificate is then issued within a period of 10 – 15 days.  

Documents Required for Income Certificate

The documents required for obtaining the income certificate may vary from one state to another. The common list of documents required for obtaining the income certificate are:

  • ID proof such as Voter ID card, Aadhaar card, driving licence, passport or photo identity card issued by the Central Government or a state government.
  • Address proof such as Voter ID card, Aadhaar card, passport, driver’s licence or any authorised document that is considered to be address proof by Central Government or a state government.
  • Passport size colour photograph.
  • Ration card (BPL) or National Food Security Card. (if applicable)
  • Signed self-declaration from applicant/head of family.

Additional documents such as expenditure proof may also need to be submitted depending on the individual requirement as provided by the state government/union territory.

Validity of the Income Certificate

The income certificate is valid for the financial year mentioned in the certificate. Thus, the certificate needs to be renewed every financial year in order to ensure validity. Also, the old certificate might be required as proof for the issue of an updated income certificate.

Frequently Asked Questions

Who is eligible to apply for an income certificate?

All persons are eligible to apply for an income certificate. Businessmen, salaried employees, non-salaried persons, widows, labourers, consultancy owners, agents, etc can apply for this certificate.

Is the EWS Certificate and Income Certificate the same?

No. The EWS certificate is an income and asset certificate issued to the economically weaker category. The income certificate will not show the caste of a person. However, an income certificate certifies the income of a family for the year it is issued. An income certificate is necessary for obtaining the EWS certificate.

Is the Agriculture Income Certificate and Income Certificate the same?

No. The income certificate includes details of annual income for all sources, whereas an agriculture income certificate contains only the details of income obtained from involvement in any and all agricultural activities.

Can NRIs apply for Income Certificate?

No. Income certificate is issued only to the residents of the respective state/UT. The applicant needs to provide the address/residence proof of the state in which he/she applies for an income certificate. Thus, only residents of the state can apply for an income certificate.

Do I need an Aadhaar card to apply for an income certificate?

Usually, any government-issued identity/address proof can be provided for obtaining an income certificate. However, an Aadhaar card is mandatory nowadays to apply for an income certificate.

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