Income Certificate Application – Importance, Documents Required and How to Apply?
What is an Income Certificate?
An income certificate is an official document issued by a state government certifying the annual income of a person or a family from all sources, including rent, salary, foreign remittance, pensions, returns or dividends from investments, daily earnings and wages, or business profits, if any. Before applying for an income certificate online, do find out who the issuing authority in your state is because it can vary from state to state.
Who can Issue an Income Certificate?
As mentioned already, the state government branch or functionary with the power to issue an income certificate can differ from state to state. While in some states, village tahsildars have the power to issue the certificates, in some other states, it could be district magistrates or sub-divisional magistrates. There could be other states where the issuing authority is the revenue circle officer or a district body accredited by the state government.
How to Apply for an Income Certificate Online?
If you want to apply for an income certificate online, visit the website of your state government follow branch or body that issues income certificates, and follow the steps below:
- Go to the respective state/district portal. For example, residents of Karnataka should visit the Seva Sindhu portal.
- Create a new account on the portal. Thereafter, log in to this account using your username, password, OTP, which will be sent to your registered mobile number, and the captcha displayed on the screen. Note that the login process could be different for different states.
- On the homepage, find an option that allows you to download the application form for an income certificate.
- Fill out the online application form. Alternatively, you can download it in PDF format and enter the details on the printed form.
- You may have to fill details such as:
-Name, age, gender
-Date of birth
-Full residential address (village, taluka, and district)
-Religion, caste, sub-caste
-Indication of your reserved religion, caste, or sub-caste category, if applicable
-Aadhaar number - You may have to furnish an affidavit to authenticate the details provided by you.
- Pay the processing fee, if applicable.
- After you apply for your income certificate online, the concerned authority may conduct an enquiry to verify your eligibility. Depending on the status of enquiry and the specific branch of the government conducting it, it could take from 10 to 15 days for the certificate of income to be released.
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How to Apply for an Income Certificate Offline?
If you want, you may also be able to submit your income certificate offline. Depending on the state you are based in, you may have to submit the duly filled in application form to the office of the district magistrate, the village tahsildar, the sub-divisional magistrate, or the revenue department office of your area.
You will also have to submit the mandatory supporting documents and pay the processing fee, as applicable. Please note that at the time of your visit, you may be asked to produce the original documents for verification purposes.
Documents Required to Apply for Income Certificate
- ID proof, such as ID card, driving licence, passport, PAN card, Aadhaar, ration card with photo, LPG card, pension card with photo, or any other relevant photo ID issued by the government
- Address proof, such as Aadhaar card, voter ID card, passport, ration card, electricity bill, water bill, or any other address proof issued by the state government, central government or a government undertaking
- Income proof, such as salary certificate or statement (Government employees), Form 16 or income tax return (non-government employees), or IT return or affidavit for small business owners
- Caste or minority certificates, where applicable
- BPL ration or National Food Security Card (if applicable)
- Rent agreement (if applicable)
- A signed copy of self-declaration from the applicant or head of the family (where applicable)
- Passport-size photographs
Importance of Income Certificate
An income certificate is an important piece of supporting documents that you may need to avail of various state government welfare and subsidy schemes. It validates or certifies your individual or family annual income, which you may need to establish to avail of certain state benefits. The following are some specific cases for which you may need :
- To apply for government jobs available to reserved category candidates
- To avail free or subsidised medical treatment
- Scholarships or subsidised education offered to students from economically disadvantaged classes or reserved categories
- Giving admission to government-funded institutions of higher education to students from economically and socially backward classes
- For getting free ration
- Availing of financial assistance provided to retired members of the armed forces
- Getting pension under state government schemes
- Accessing financial assistance from the government by victims of a natural calamity or a major man-made disaster
- Entitlement to government land, properties, or hostels or other types of accommodation
How is Your Income Calculated for an Income Certificate?
When issuing income certificates, the authority calculates the annual income earned by all family members (where applicable) or an individual. The annual earnings of individual family members from the following sources are added to arrive at the total family income:
1. Salary Income
Basic salary, Dearness Allowance (DA), special pay, and other allowances are taken into account for calculating your salary income. Note that House Rent Allowance (HRA), Travelling Allowance (TA) and any honorarium is excluded.
2. Pension
Excluding the commutation amount, the pension amount will be included in total income.
2. Income from Real Estate
Rent received and brokerage charges from real estate considered when calculating total income. However, any annual maintenance charges paid will be deducted from the rental or brokerage income to arrive at the final number.
Income from a business or a profession: Income from any business, profession or consultancy/agency work is included in the total income based on a family member’s Income Tax Return (ITR).
3. Daily Wages
Daily earnings declared will be calculated towards the total family income.
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How to Track Status of Income Certificate?
To track the status of your income certificate, follow the steps below:
Step 1: Visit the relevant administrative website of your state government
Step 2: Click on ‘online application’
Step 3: From the dropdown menu, select ‘Application Status’
Step 4: When you submit your application, you will receive an acknowledgement number. To check the status of your application, you will have to enter the same number in the relevant field
Step 5: Now, click on ‘Get Status’ for a status update
How to Download an Income Certificate?
Applied for an income certificate online? In most states, you will also be able to download the certificate, once ready, by following the steps below:
Step 1: Visit the relevant government website/portal.
Step 2: The dashboard will have a ‘Print Certificate’ option. Click on it.
Step 3: You may then have to enter the acknowledgement number of your application
Step 4: Now, click on ‘show certificate’
Step 5: You will be be shown a softcopy of your certificate
Step 6: Click on the ‘download certificate’ option to complete the process.
Final Word
The income certificate is an official declaration of an individual’s or their family’s annual income. This document can be used to avail a number of welfare schemes offered by a state government. The issuing authority and process to apply for these certificates could be different for different states. However, now that you have an idea as to how to apply for an income certificate online as well as offline, hopefully it will be easier for you to navigate the administrative hurdles, if any.
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FAQs
The validity of an income certificate can vary from a few months to a few years, depending on the state you are a resident of. For example, the validity of an income certificate in West Bengal is just 3 months. In Karnataka though, an income certificate is valid for up to 5 years.
No, you cannot. Income certificates are only available to residents of the particular state in which they have a domicile status. An applicant will have to submit a proof of residence in the state in which they have applied for an income certificate.
No, you do not need to submit your old income certificate to renew it. However, you have to keep your old certificate for 5 years after it is issued. This is necessary to verify eligibility for any government program that you may avail yourself at a later date.
No, the income certificate certifies the annual income of an individual and his/her family for around a year. On the other hand, People belonging to the Economically Weaker Section (EWS) can apply for an EWS certificate. Using this, they can get the benefit of a 10% reservation in government jobs and higher education.
While an income certificate declares the income of a family from all sources, it does not include agricultural income. An agricultural certificate computes income from agricultural sources for tax exemption. Using it, individuals can get income tax exemption under Section 10(1) of the Income Tax Act.
The Dharwad Bench of the High Court of Karnataka ruled in 2022 that caste and income certificates are two different things and they cannot be used interchangeably.
Read More on Income Tax Act
