Are you expecting fee concession or scholarship for your children's education? Or wish to take a loan from Govt agencies? Or want to apply for a pension scheme? In all these and many more occasions, you may be asked submitting income certificate issued by an authorized Govt official. Let's check what are the aspects lying on this important document; start from its definition what is Income Certificate, purpose, how to get it, who will issue, validity, application forms etc..
1. What is Income?
Income means regular earning or financial gain by a person who is working for an organization, laboured or doing business. It includes but not limited to salary of an employee, various pensions, daily wage of a labourer, weekly wage of a labourer, profits from business, charges of consultancy, commissions of agency work and any kind of regular financial benefits received by a person.
2. How To Calculate Income?
Income shall be calculated in two ways - individual income and / or family income. Following are the details of how income will be calculated to an individual and as a family:
2.1 Calculating Individual Income
- Income from Salary: Basic pay, Special pay, Dearness allowance (DA), Deputation pay, Other allowances if any are to be considered as income. Exclusions are House Rent Allowance (HRA), Traveling Allowance (TA), and Honorarium received for special work.
- Income from Business / Profession: Business income mainly calculated on the basis of Income Tax Return Filing. If person is non-assessee, income will be considered on the declaration of the assessee.
- Income from Pension: Pension Payment Order is the main criteria to calculate income from pension. It excludes commutation amount.
- Income from Daily Wages: Declaration from the daily laborer to be considered for calculating Daily wage income.
- Income from Property Produces: Declaration and proof of produce sale to be considered for Property Produce Income.
- Income from Property Transaction: Amount in the Sale deed or acquisition transaction document to be considered as income.
- Income from Rented Property / Building: Income will be after deducting annual maintenance charges.
- Income from Expatriate Employee: Basis on the declaration submitted.
- Other income sources: Income form share trading, deposit interest, interest from bonds etc.
2.2 Calculating Family Income
- Family income should be calculated by means of regular income that earned by each individual members residing together as a family. Family members include, Parents or Guardian, Spouse, Unmarried daughters and unmarried brothers / sisters. Income from widow daughter / sister is excludes when calculating family income.
- An allowance shall be considered in the case of more members family ie., more than five members.
3. What is Income Certificate?
Income Certificate is a document claiming a person's or a family's annual income from all sources including salary, daily wages, pension, business, produces from property, rent, and remittances from expatriate member. It's an official document and proof of your income, issued by a Govt. Authority after verifying the application, affidavit and other supporting documents submitted by the applicant. Income Certificate becomes an essential document for those who expects any financial assistance through Govt schemes or seat reservation in education programs.
4. Purposes and Uses of Income Certificate
Income Certificate is an official document that accepts as a proof of income of a Person or Family, hence the people who fall under poverty line (BPL) would use it vastly. Following are the possible purposes Income Certificate to be used as a proof of income with other applications:
- Financial support in Educational programs - Waiving or concession of fees.
- Seat Reservation in Educational Programs - Preference in college admissions for Socially and Economically backward classes.
- Availing various Loans from Govt. Institutions
- For applying various pension schemes - Old age pension, widow pension, agricultural laborer pension, TB / Leprosy / cancer patient pension
- Ex-service men financial aid
- Avail SC / ST Loan from various Govt. schemes
- Relief to the victims of natural calamities - Tsunami, earth quake, landslide, flood, cyclone, drought, etc.
- Aid to physically handicapped persons - artificial limb, cycle, hearing aid, etc.
- Free ration
- For getting benefit of various social benefit schemes declared by the Govt. from time to time.
5. How to Get Income Certificate?
Income certificate can be obtained by submitting a request to Govt appointed authority that varies from state to state. Many of the Indian States adopt the Tehsildar to be the authority to issue Income Certificate while some other States adopt District Magistrate or District Collector or Village officer or else appointed by the Govt.
Following are the complete list of Authority In Various States / Union Territories issuing Income Certificate:
5.1 Income Certificate Issuing Authority In Various Indian States
- Andhra Pradesh: Tahsildar
- Arunachal Pradesh: District Magistrate & Collector
- Assam: Revenue Circle Officers
- Bihar: Circle Officer of Circle Office
- Chattisgarh: Naib Tahsildar
- Goa: Mamlatdar of all Talukas
- Gujarat: District Collector / Deputy Collector / Asst. Collector / Prant Officer / Mamlatdar
- Haryana: CRO (Tehsildar / Naib Tehsildar concerned)
- Himachal Pradesh: Tahsildar of Revenue Department
- Jammu & Kashmir: Sub-Divisional Magistrate (not below the rank of Tehsildar)
- Jharkhand: Sub-Divisional Officer in each District
- Karnataka: Tahsildar
- Kerala: Village Officer (if produced before the State Govt. Departments or authorities) / Tahsildar (if produced before the Central Govt. Departments or authorities)
- Madhya Pradesh: Tahsildars / Naib Tahsildars
- Maharashtra: Tahsildar
- Manipur: District Authorities i/c DC / ADC / SDO (not below the rank of SDO / SDM)
- Meghalaya: Employer in case of Govt. employee and by the MP / MLA / DC / SDO Civil in case of others.
- Mizoram: District Magistrate or any other Officer authorized by District Magistrate
- Nagaland: Dy. Commissioners, Addl. Dy. Commissioners and Sub-Divisional Officers (C)
- Odisha: Revenue Officers
- Punjab: CRO (Tehsildar / Naib Tehsildar concerned)
- Rajasthan: Tahsildar / Notary
- Sikkim: Special Executive Magistrate (Block Development Officers, Rural Management & Development Deptt.)
- Tamil Nadu: Zonal Deputy Tahsildar
- Tripura: Deputy Commissioner of respective Districts
- Telengana: Tahsildar
- Uttar Pradesh: Tahsildar Uttaranchal: Tahsildar / SDM / City Magistrate
- West Bengal District Level: Dist. Magistrate or Addl. Dist. Magistrate
- West Bengal Sub-Divisional Level: Sub-Divisional Officer of the concerned
- West Bengal Block Level: Block Development Officer of the concerned Blocks
- West Bengal Kolkata Municipal Corpn.: The Collector, Kolkata
- West Bengal Students residing within civil Jurisdiction of Hon’ble High Court, Kolkata: The Collector, Kolkata
- West Bengal Other areas covered in Kolkata Police are concerned, i.e., areas over which Collector, Kolkata does not exercise jurisdiction: Concerned District Magistrate or any other Officer authorized by the District Magistrate of the respective Districts, i.e., South 24 Paraganas and North 24 Paraganas.
5.2 Income Certificate Issuing Authority In Various Union Territories of India
- Andaman & Nicobar: Tahsildar
- Daman, Diu, Dadra, and Nagar Haveli: Mamlatdar
- Chandigarh: Sub Divisional Magistrates
- Delhi: Sub-Divisional Magistrate (SDM) of Govt. of NCT of Delhi
- Lakshadweep: Deputy Collectors in Agatti and Minicoy and SDOs in the remaining Islands
- Pondicherry: Tahsildar, Deputy Tahsildar
6. Income Certificate Application Form
One who wish to get Income Certificate for a particular purpose, first of all, check whether the required purpose information / prospectus has given any format of it. For example, most of the admission prospectus of educational programs would have standard format for applying Income Certificate. If there is no specific instructions, you can use printed form which is available near to your concerned Authority office listed above or download it from concerned websites. Besides, many States have implemented eDistrict online facilities that make hassle free submission of various services including Income Certificate request.
7. Structure and Important Sections of Income Certificate Application Form
In a standard income certificate application format, the structure and information shall be as follows:
- Basic data section - It includes basic personal details, certificate purpose, asset details, various income sources, and total annual income.
- Declaration section