How to Get an Income Certificate Online?

Written by : Knowledge Centre Team

2024-08-02

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As an individual, you can earn income from multiple sources. The various sources of income could be salary, rental income from house, etc. In India, state and central governments offer many saving schemes to specific categories. To avail of the benefit under some schemes, you will have to show your income certificate. You can use an income certificate for those schemes where the eligibility criteria are your annual income or your family's annual income.

Income certificates are issued only to those who belong to the economically weaker section of society.

What is an Income Certificate?

An income certificate is an official document issued by different state governments in India. It certifies your annual income.

The income certificate will include your income details and your family's from all the sources. Using it, you can avail benefits under various government schemes.

Different states have different issuing authorities. In some states, the village tahsildars issue the certificate. While in others, Revenue Circle Officers, District Collector, Sub Divisional Magistrates issue the certificate. Income certificates are also known as Economically Weaker Section (EWS) Certificates.

Why would you Need an Income Certificate?

You need an income certificate as proof of eligibility for various benefits under schemes issued by the state government. Some of the reasons to have an income certificate are listed below:

1. Many educational institutes have reserved quotas for economically poor sections of society. A family income certificate helps you secure admission for free or at a discounted rate in such institutions.

2. To avail medical benefits like subsidized income, free or concessional treatment, financial assistance to mothers having a girl child, or free or concessional treatment.

3. You need an income certificate to avail of loans from the respective state government employers at a concessional interest rate.

4. To get relief during natural disasters and calamities.

5. Widows need income certificates to claim government pension, wherever applicable.

6. To claim entitlement to flats, hostels, or any other government accommodation.

How to Get an Income Certificate Online?

Different state governments have separate online portals to download income certificates. You can follow the below steps to get your certificate online:

1. To apply for the certificate, go to the respective state online portal.

2. Using your mobile number, create your user account on the website. Remember your username and password for future use.

3. Using your user id and passwords, log in to the account and look for sections related to income certificates.

4. You will need to submit a form with details to get your income certificate. In general, you will need to provide the below details:

a) Name, age, address, sex, DOB, etc
b) Identity proof like driver's license, ration card, etc
c) Proof of address - rent, electricity, or telephone bill (you may need to get it attested from Gazetted Government Officers in some states)
d) Aadhar card
e) Caste, sub-caste, and religion
f) Parent income certificate, form 16 by an employer, salary certificate as proof of income
g) An affidavit declaring that all the details you have submitted in the form are correct.

Once you submit the form, you can collect the income certificate from the local district authority's office or download it from the portal. The income certificate is made available to you between 10 to 15 days from the submission date.

Apply Offline

You need to get the form from the nearest Tahsildar office, or you can download it online.

Fill in the details, attach the documents and submit them at the nearest Tahsildar office.

Can ITR be a Proof of Income?

Yes, Income Tax Return (ITR) is considered proof of income. You are obligated to file an ITR in the prescribed form if your taxable income in a financial year exceeds the maximum amount not chargeable to tax.

If your income is not chargeable to tax, however, if you meet the below criteria, then file ITR if:

The deposited amount exceeds Rs 1 crore in one or more current.
Incurred expenditure exceeds Rs 2 lakh for travel to a foreign country.
You have incurred expenditure of amount or aggregate of the amount exceeding Rs 1 lakh on the electricity consumption.

There are many benefits you get when you file for ITR:

1.Easy access to credit facilities and loans: Regular ITR filing is documented evidence of steady income and indication that you have been paying taxes religiously. It helps you get loans and credit lines such as credit cards, overdrafts, and bill discounting facilities with ease.

2. For visa processing: ITR is legitimate income proof and is considered by several host countries while processing visas.

3. Claiming tax refunds: If you have paid more tax than you should, you can claim a refund for it. The refund of taxes withheld from income is claimed by ITR filing.

4. You become eligible for government tenders: You can only qualify to undertake government projects if you have submitted ITR in the past few years.

These are some of the many benefits you get when you file ITR. Every individual should file ITR on time.

How to Reduce your Tax Liabilities?

You can invest your savings into the options which are eligible for a tax deduction. Certain necessary life expenses also qualify for a tax deduction and can reduce your annual tax outflow. Here’s a list of the most common expenses and popular tax-saving investments:

Expenses Allowed as Deduction	Investments to Save Tax
- Child’s school and college tuition fee	- Life insurance plans including, term plan, endowment and moneyback plans
- Registration charges for new home	- Provident fund investments including, EPF, PPF
- Medical bills for senior citizens against specified diseases	- New/National Pension Scheme (NPS)
- Medical insurance premiums for self and parents	- Equity Linked Savings Scheme (ELSS)
- Money invested for the welfare of a dependent relative with a disability	- Unit Linked Insurance Plans (ULIPs)

Elaborating a few of the important investments below:

Term Insurance Plan

- Helps you secure the future of your loved ones from your early demise
- The premium qualifies for a tax deduction under section 80C iSelect Smart360 Term Plan from Canara HSBC Insurance offers benefits like the return of premium and in-built protection options against critical illnesses.

Unit Linked Insurance Plans (ULIPs)

- Invest in diversified portfolios of debt or equity stocks or both
- Manage your portfolio actively yet automatically
- Most useful for safely meeting your child’s goals and saving for retirement
- Systematic withdrawal allows you to receive a tax-free pension from the plan

ULIPs are a good tax-saving and investment option for you if you want to grow your capital aggressively. Also, get a life cover, and save taxes.

Guaranteed Savings Plan

- Safe investment plan with guaranteed maturity benefits and life cover
- Bonus additions for long-term investors
- Premium protection option for protecting your family’s important goals

Health Insurance

- Health insurance is an important investment in your contingency plan
- You should include Mediclaim and critical health insurance in your folio
- Tax deduction up to Rs 75,000 if covering senior citizen parents

While Mediclaim will take care of sudden medical bills, critical health insurance will offer a large sum for life-threatening diseases. Health First Plan from Canara HSBC insurance is a critical health plan which also covers minor conditions of cancer and heart ailments.

Every individual wants to have a secure and bright future. The first step towards that is saving, small or large, the amount should not matter. Understand budgeting. It will help you save with ease. Know the tax-saving investment options applicable for you and invest in them. They save tax for you and are good investment options to create wealth. Keep your investment regular. With time, you will achieve all your financial goals.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.

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