What Is the Standard Deduction in Salary: All You Need To Know

If you are looking to reduce your tax liabilities, you must be aware of what is the standard deduction in salary. Remember, the deductions are proposed based on the way how taxpayers utilise their income. Here’s what you need to know:

  • Section 16 of the Income Tax Act of 1961 provides certain tax-saving measures for salaried individuals, which also includes standard deduction
  • Despite the provision being disregarded for several years, it was re-introduced again in 2018

Here’s a brief overview of this concept and how it works.

What is the Standard Deduction in Income Tax?

Here is a detailed overview of these provisions for salaried employees and pensioners:

  • The Union Government introduced the standard deduction in its current form in the Budget 2018
  • It replaced two deductions- travel allowances and medical deduction
  • Salaried individuals can avail of a standard deduction of up to ₹50,000 under Section 16 of the Income Tax Act of 1961
  • You can’t claim this deduction if you have chosen the new tax regime
  • Under the old tax regime, you can avail of this deduction in addition to common Sections 80C and 80D deductions

What is the Purpose of Standard Deductions?

Here are some of the objectives behind the introduction of this concept:

  • It simplifies the tax filing process due to its minimal paperwork
  • This deduction enables deductions regardless of the expenses
  • It provides tax relief to salaried individuals belonging to the middle class
  • It also offers tax relief to pensioners, who may not have a primary source of income

Who is Eligible to Avail of Standard Deductions?

‘Is standard deduction applicable for pensioners or business owners?’ The answer is simple. While pensioners are eligible to claim this tax deduction, business owners can’t avail of this benefit. Here are a few more cases where you will not be eligible to claim standard deductions:

  • Self-employed individual
  • A salaried or pensioner taxpayer who has opted for the new tax regime
  • A Hindu Undivided Family (HUF) or a business entity

Also Read: What Deductions Are Allowed in the New Tax Regime?

How Does Standard Deduction Reduce Taxable Income?

So, how does the standard deduction work in reducing your taxable income? Check the example given below to understand how standard salary deduction impacts your tax liabilities:

Say X is a salaried individual with an annual income of ₹12 lakhs. Here’s how X’s taxable income will get reduced with standard salary income:

Gross Salary (Annually)₹12 lakhs
Standard Deductions₹50,000
Net Taxable Income₹11.5 lakhs
Total Tax Savings₹15,000

How to Calculate Standard Deduction for Multiple Employers

Are you wondering how to calculate standard deduction in income tax for multiple employers? Here is what you need to keep in mind:

  • The standard deduction doesn’t depend on the number of jobs you changed
  • Instead, you can avail of a flat deduction from your total salary earned in a financial year
  • You can avail of a deduction of ₹50,000 for the cumulative salary earned in different jobs for a specific financial year

Documents Required to Avail of Standard Deductions

You don’t need any supporting documents to claim standard deductions. However, you must have the

following documents to file income tax in general:

  • Bank statements of the assessment year
  • Statements for interest income
  • Tax Deducted at Source (TDS) certificates
  • Investment-related documents
  • Form 26AS and Form 1040

Standard Deductions Under the New Tax Regime 

Check the details about standard deductions in the new tax regime below:

  • Standard deductions for salaried classes were introduced in the Union Budget 2018
  • When the Finance Minister introduced the New Tax Regime in the Union Budget 2020, she offered a choice between concessional rates or major deductions 
  • So, standard deductions were not available to salaried individuals if they opted for the newer tax scheme 
  • However, the Government of India has introduced salaried deductions for salaried taxpayers in the Union Budget 2023

In addition to standard deductions, you can enjoy tax benefits on personal loans, provided that you use them for the following purposes:

  • Home renovation
  • Education
  • Business needs, etc. 

To avail of these benefits, you can get an Online Personal Loan of up to ₹5 lakhs on Fibe at affordable rates with minimal paperwork. Download the Personal Loan App to get funds instantly with an easy application process.

FAQs on Standard Deduction for Salaried Individuals & Pensioners

What is the standard deduction for senior citizens pensioners?

The standard deduction for senior citizen pensioners is ₹50,000 per annum. 

What is the standard deduction for salaried employees?

The standard deduction for salaried individuals is ₹50,000 per annum. 

What is the limit of standard deduction?

The limit of salary deduction for a financial year is ₹50,000.

10 Easy Steps to Pay Your Income Tax Online in 2026

Wondering how to pay income tax online? The process is now fully digital through the Income Tax Department’s e-Pay Tax portal. Enter your PAN details and verify using OTP. Select the assessment year and choose the type of payment. Fill in your tax amount and complete the payment using net banking or other available modes.

If you’re unsure about how much tax you need to pay, the portal also offers built-in calculators to help you estimate your liability before proceeding. Once the payment is successful, you receive an instant challan confirmation. Knowing how to pay income tax online this way helps you avoid paperwork, delays and unnecessary bank visits.

How to Pay Income Tax Online?

Follow these steps to pay tax online without logging in. 

  • Step 1: Visit the Income Tax Portal 
  • Step 2: Click on the ‘e-Pay Tax’ under the ‘Quick Links’ section
  • Step 3: Enter your PAN/TAN number and mobile number and click on ‘Continue’
  • Step 4: Enter the OTP and click ‘Continue’
  • Step 5: Click the ‘Proceed’ button on the ‘Income Tax’ option
  • Step 6: Choose the assessment year and ‘Self-Assessment Tax (300)’ under the ‘Type of Payment’ option 
  • Step 7: Enter the tax details 
  • Step 8: Select the payment method and click on ‘Continue’
  • Step 9: Review the challan details and click on ‘Pay Now’ 
  • Step 10: Check the box to agree with the terms and conditions and click on ‘Submit To Bank’ 
  • Step 11: Complete the payment and download the challan for your reference 

Eligibility Criteria for Income Tax Returns 

According to the Income Tax Act, you are liable to pay tax if you fall under the following criteria:

  • Indian citizens with an annual income exceeding the basic exemption limit
  • Cooperative Society 
  • Body of Individuals 
  • Association of Persons
  • Firm
  • Artificial Juridical Person
  • Local Authority 
  • Indian resident with property or financial interest outside India
  • You are responsible for producing returns u/s 139 (4B) (ITR 7)
  • Indian resident with signing authority or ownership of an account outside India
  • If you claim deductions u/s 90, 90A or 91
  • All companies 

In addition, you have to compulsorily pay your taxes online if:

  • You are a corporate employee 
  • Provisions of section 44AB of the Income Tax Act, 1961 apply to you, provided you aren’t a company 

Documents Required for Tax Online Payment 

Here are the documents you should keep at hand for tax e-payment:

  • Aadhaar card
  • PAN Card
  • Form 16A/B/C
  • Bank account details
  • Bank statement/passbook
  • Form 26AS and AIS/TIS
  • Documents required to claim deductions, including home loan statements, tax-saving schemes documents, rental income, life-insurance premium payment receipts, etc. 

Also Read: Old Regime vs New Regime of Taxation in India

Benefits of e-Tax Payment

Here are all the advantages of filing income tax online. 

  • Online payment allows you to pay your taxes anywhere and anytime
  • It requires minimum paperwork, which simplifies the process   
  • The amount is automatically deducted from your bank account 
  • This process eliminates the middleman, which reduces the risk 
  • This is a quick and easy process that generates your challan instantly 
  • Income Tax Department’s built-in calculators help you calculate the accurate amount, which streamlines the tax payment process
  • You get instant confirmation of the payment when you pay your tax online
  • Income Tax Department uses robust security measures to keep your data secure 

By following these steps, you can clearly understand how to pay income tax online and avoid visiting the bank, as required in offline payments. Similarly, if you want to skip bank visits while applying for a loan, you can do so with the Fibe Instant Cash Loan.

You can get up to ₹10 lakhs at an affordable interest rate, all from the comfort of your home. That’s not all. You can choose a tenure of up to 36 months and ensure a comfortable repayment experience. Download the Personal Loan App or go to our website to apply now!  

FAQs on Income Tax E-payment

How can I pay my ITR through net banking?

For tax e-payment via this mode, follow these steps: 

  • Step 1: Log in on the official e-Filing portal 
  • Step 2: Click on the ‘e-Pay Tax’ under the e-File tab 
  • Step 3: Click on the ‘New Payment’ tab 
  • Step 4: Enter the assessment year and select the type of payment
  • Step 5: Add tax details and click on continue 
  • Step 6: Select the ‘Net Banking’ option and click ‘Submit To Bank’
  • Step 7: Complete the payment

How do I pay my service tax online?

You can file Excise Duty and Service Tax online on the NSDL-EASIEST website. 

How to pay income tax after generating challan?

After generating challan, you can visit the bank or opt for tax e-payment through the net banking facility.

Electronic Clearing Service: All you need to know

The Electronic Clearing Service (ECS) is one of the main drivers of digital transactions in India. This facility allows customers to automate fund transfers from one bank account to another. 

To know more about the ECS mechanism in banking, its types, how it works and more, read on. 

What is an Electronic Clearing Service? 

Here are some details related to the ECS mechanism:

  • The Electronic Clearing Service is generally used for making bulk transfers that are both repetitive and periodic in nature
  • Large institutions use this method for executing transfers, like salaries, interest and dividend payments, loan instalments and more
  • ECS also handles transactions processed under the National Automated Clearing House (NACH)

What are the Types of ECS?

There are two categories of electronic clearing systems in banking:

  • ECS Credit: Institutions use ECS credit by raising debit against their bank account to make transfers of salaries or dividends to large beneficiaries 
  • This mandate type will help you to get the payments on a fixed date without any uncertainty.
  • By using this ECS credit mandate, you can reduce costs like administrative charges that include dispatching costs, buying papers, etc.
  • ECS Debit: Large institutions use this service to raise debits to a large number of customers of utility services, investments, loans, etc. 
  • This can help eliminate regular tracking due dates or payment deadlines. Transactions happen automatically on or before the due date, once it is set up.
  • This system is highly secure and the transactions are always encrypted that reduces the risk of fraud.

How to Opt for an ECS Mandate

Here is how you can avail of the electronic clearing system:

  • Step 1: Visit your nearby bank branch and collect the ECS mandate 
  • Step 2: Provide necessary details to the bank authorities, including the account number, account holder’s name, branch name and more
  • Step 3: The bank will send these details for scrutiny to the National Payments Corporation of India (NPCI) after verifying them
  • Step 4: The bank will debit the specified amount through the ECS mandate once NPCI completes the scrutiny

Benefits of Opting for an ECS Mandate

Here are some of the advantages of utilising the electronic clearing service:

  • The ECS mechanism streamlines the payment process and reduces the paperwork
  • As transactions are automated, the margin of error becomes tapered
  • The automation of payments increases the efficiency of all the parties involved
  • It helps individuals avoid late penalties as payments are automatically scheduled
  • It is convenient and saves time, as it doesn’t require you to make repeated payments manually   

ECS Charges

Charges for electronic clearing systems in banking may vary depending on the type of transaction and the bank’s policies. Here are some of the charges associated with the ECS payment method:

  • ECS Verification: Most leading banks don’t charge any fee for ECS verification
  • ECS Return Charges: Banks levy this fee in case of an ECS bounce due to insufficient funds

Difference Between ECS and NACH

Check the following table to know what distinguishes the Electronic Clearing System from the National Automated Clearing House. 

BasisECSNACH
Operational ModelA regional clearing system managed by the RBI and is applicable within the circle where implementedNACH is a part of ECS system, managed by NPCI and applicable to all banks and financial institutions
Mandate VerificationIt doesn’t generate any unique transaction reference numberThis system generates a unique reference number for each transaction
Transaction TimingsThese payments are processed on a certain date as per the predefined cycle of paymentIt operates on a scheduled basis and transactions are processed in batches during specific time slots
Settlement Time3-4 working daysA maximum of 24 hours

By giving an ECS mandate, you can streamline your loan repayments and avoid missing an EMI payment. However, if you are looking for quick credit, you can get a Personal Loan of up to ₹5 lakhs on Fibe. This loan comes with affordable rates for your various requirements, ranging from funding a vacation to covering the expenses of a wedding. 

Download the Fibe Personal Loan App to enjoy quick funding with a simple application process and minimal paperwork.

FAQs on Electronic Clearing Service (ECS) in Banking

What is the ECS process in banking?

Here is how the electronic clearing service works:

  • Collect ECS mandate from the bank by providing essential details, like account number, account holder’s name, branch name, etc.
  • The bank will verify these details and send them to the NPCI for scrutiny
  • The bank will debit the specified amount from one bank account to another after the scrutiny

How long does ECS clearing take?

The processing of transactions takes 3-4 working days through ECS in baking. 

What happens if ECS is returned?

If a transaction through an electronic clearing service fails due to lack of sufficient funds, here is what will happen:

  • The bank will levy a penalty in the form of ECS/NACH return charges
  • This penalty can even range up to ₹500 with GST charges for some of the leading banks

What is Buy Now Pay Later? Know its meaning, benefits and more

The Buy Now, Pay Later (BNPL) facility is becoming increasingly popular as more and more e-commerce platforms, banks and retailers now offer it. Thanks to its easy and quick approval, a large number of borrowers can now access short-term credit instantly. 

To better understand what is Buy Now, Pay Later, how it works, its advantages and more, read on.

BNPL Meaning 

It is also known as a Point-of-Sale (POS) instalment loan, as you can opt for it at the time of payment. Here are some important points to understand its meaning:

  • It is a type of short-term financing, typically offered with no-cost or low-cost EMIs 
  • You can pay for the purchases in instalments by making a small upfront down payment
  • You can spread the instalments over a flexible tenure, depending on the lender

How the Buy Now, Pay Later Services Work?

Now that you know what is BNPL, here are some key points to understand how it works. 

  • You will have to opt for the facility at the time of checkout when purchasing from a partner retailer
  • Upon approval, you need to make a small down payment and the lender will pay the remaining cost to the retailer 
  • You also need to choose a suitable repayment tenure to pay the remaining amount to the lender through a series of instalments with no or low interest
  • Upon complete repayment, your credit account with the lender will close

What are the Things to Consider While Choosing a BNPL Facility?

The following are some of the points you need to keep in mind when applying for a Point-of-Sale instalment loan:

  • You must ensure that the amount you apply for is manageable and that you can repay it without any financial strain
  • You must look for a suitable repayment tenure to ensure timely payments because non-payment or late payment of BNPL EMIs can negatively impact your credit history 
  • You should examine if the scheme is restricted to a single merchant or if you can avail of it at multiple retailers
  • You must avoid falling into a debt cycle by ensuring you don’t overspend by leveraging the scheme
  • You must check the available credit limit before applying to ensure you borrow within the limit

Also Read: Different Types of Loans that You Should Know

What Future Holds for BNPL Services?

As a customer-centric scheme, the facility has grown in popularity and is expected to continue to do so. Here are some trends that reflect that the future is bright for this credit scheme:

  • There has been a rise in partnerships between financial institutions and retailers to provide this scheme
  • Since some companies provide exclusive offers and discounts, it has become a preferred option 
  • BNPL service providers are now expanding into new markets, including healthcare, Edtech, and more

You can access credit through the Buy Now, Pay Later facility from Fibe for a wide range of services like medical requirements and online courses. With its 100% digital and simple application process, you can instantly get a loan for services up to ₹10 lakhs. Download the Fibe App to get this affordable loan with easy repayment options at no-cost or low-cost EMIs.  

FAQs on What is Buy Now, Pay Later Scheme

How does Buy Now, Pay Later work?

Here is how the BNPL scheme functions:

  • You can purchase from retailers who have partnered with institutions offering the facility
  • You will need to select the ‘Buy Now, Pay Later’ option at the checkout
  • Once approved, you will have to make a small downpayment and choose a tenure 
  • You can repay the remaining amount in instalments spread over the selected term

What are the benefits of BNPL?

Here are some of the advantages of choosing this scheme:

  • It makes instant credit available 
  • It makes big-ticket purchases affordable and easy on the pocket
  • This service offers cost-free or low-cost EMIs

What is the maximum amount of BNPL?

This depends on the financial institution you choose. With Fibe, you can access credit worth ₹10 lacs through the Buy Now, Pay Later service. 

What is the difference between BNPL and EMI?

Here is the key difference between these two:

  • BNPL is the instant credit facility offered by financial institutions
  • EMI refers to the repayment facility offered under BNPL and other credit facilities

Digital Signature Certificate: Important Aspects You Need To Know

A Digital Signature Certificate has become a legal alternative to a wet signature. This comes after the IT Act of 2000, which mandates the use of digital signatures to ascertain the authenticity of electronic forms. 

To know more about what is a Digital Signature Certificate, its types and how you can download it, read on. 

What is a Digital Signature Certificate?

Check the following points to understand the DSC meaning and features:

  • It is a secured digital key that validates and certifies the identity of the person who holds it
  • This certificate uses public key encryption to create a digital signature
  • You can use it to access services or information online or sign a document digitally
  • Individuals and organisations can obtain this certificate through a licensed Certifying Authority

Types and Classes of DSC

There are three categories of Digital Signature Certificates:

  • Sign: You can use this type of certificate to sign a document and affix it to a PDF or file
  • Encrypt: You can use to encrypt files, documents and other confidential data 
  • Sign and Encrypt: This type of certificate allows you to both sign and encrypt a document and is suitable for government documents and forms

Here are the details about the three classes of DSC:

  • Class 1: Individuals and private subscribers can obtain this certificate and it is used for validating the user’s name and email address within the Certifying Authority’s database
  • Class 2: Authority signatories can get this certificate for the purpose of e-filing forms on government portals
  • Class 3: You need a Class 3 Digital Signature Certificate for online bidding in e-auctions and online tenders

Also Read: What is KYC & e-KYC Documentation

How to Apply for a Digital Signature Certificate

Here is how you can avail of a DSC online:

  • Step 1: Visit the official website of any licensed Certifying Authority
  • Step 2: Select the ‘Digital Signature Certificate Class 3 Registration’ option 
  • Step 3: Enter the necessary details in the application form, including the class, validity, type, name, contact details and more
  • Step 4: Upload your recent photograph and e-sign the declaration
  • Step 5: Upload the required documents and pay the DSC issuance fee
  • Step 6: Submit the form for the Certifying Authority to review your application
  • Step 7: The Certifying Authority will issue a certificate electronically once they verify your application

Before you apply for a DSC, make sure you have the following documents ready:

  • Recent passport-sized photos
  • Address proof 
  • PAN card
  • Aadhaar card

How to Download a DSC  

The process varies with the Certifying Authority you have applied with. So, read the instructions available on the official website. Here are the steps you can follow to download a Digital Signature Certificate online from the PantaSign website:

  • Step 1: Visit the official website of the PantaSign
  • Step 2: Click on the ‘Downloads’ category 
  • Step 3: Download the certificate utility by clicking on ‘Download’ 
  • Step 4: Extract the downloaded utility and open the ‘PantaCharge’ folder on your device
  • Step 5: Click on the ‘PantaCharge.exe’ file and hit the ‘Get Started’ button
  • Step 6: Enter your application number and passcode received on your registered email and mobile
  • Step 7: Hit the ‘Login’ button and click on the ‘Download Certificate’ button
  • Step 8: Enter the Token Password to download the certificate

e-Signatures as a method of authentication of digital documents has made getting an online loan much easier. You can also get an Personal Loan of up to ₹5 lakhs on Fibe with minimal paperwork. Apart from quick funding, you get affordable interest rates and tenures of up to 36 months. Download the Fibe Personal Loan App or register on the website to get credit with a simple application.

FAQs on Digital Signature Certificate

How can I get a DSC certificate online?

You can get a Digital Signature Certificate online by applying on a Certifying Authority’s website. There are around 15 Certifying Authorities registered in India.

What is the cost of applying for DSC?

The price for applying for an e-signature with one-year validity ranges between ₹300 and ₹1,900, depending on the Certifying Authority and validity period you choose.

What is an example of a digital signature certificate?

One instance where a DSC certificate is used for authentication of electronic forms is when you apply for an online loan.

How long is DSC valid?

A Digital Signature Certificate is typically valid for one to two years.

Collateralised Loan Obligations: Everything You Need To Know

Collateralised loan obligations or CLOs, are an investment option that has the potential for higher returns. They are an alternative to corporate bonds and have a history of stable performance. 

Read on to learn what CLOs are, their structure, process and more.

What are Collateralised Loan Obligations?

Here are some key points about CLOs:

  • CLOs are supported by a pool of loans, known as leveraged loans and bank loans. 
  • A CLO pools payments of debts from the underlying loans and then distributes them to investors of different tranches. 
  • These tranches are ranked based on the underlying loans’ creditworthiness. 
  • Investors in the lower CLO tranches have the potential to earn high returns, but they also have a higher risk profile.

Here are the various tranches in a CLO:

Structure of a CLO
 AAA Tranche
 AA Tranche
 A Tranche
BBB Tranche
BB Tranche
Equity Tranche

How are Collateralised Loan Obligations Created

Here is the process for creating CLOs:

  • Step 1: Decide the Capital Structure: The managers of CLOs decide the capital structure with different return and risk expectations.
  • Step 2: Raise Capital: Then, the CLO managers seek capital from investors to purchase loans underlying the security.
  • Step 3: Choose Tranches: The investors choose a tranche according to their return expectations and risk tolerance.
  • Step 4: Buy Loans: The managers of CLOs purchase loans with the raised capital.
  • Step 5: Create Special Purpose Vehicle (SPV): SPVs are created for issuing the CLOs to the investors.
  • Step 6: Repay the Investors: CLOs will start paying the investors according to their tranches.
  • Step 7: Termination: After the repayment of all the securities and loans, the CLOs will be terminated.

Also Read: Tax saving investment options in India

Benefits of Collateralised Loan Obligations

Here are some pros of CLOs:

  • Higher Returns: CLOs provide higher returns than other fixed-income investments because the underlying loans are riskier as they are offered to non-investment grade borrowers.
  • Portfolio Diversification: CLOs also offer a higher exposure to diversified loans made towards non-investment grade borrowers, which helps reduce the default risk.
  • Enhanced Liquidity: CLOs offer more liquidity as compared to the underlying loans since they can be easily traded in the secondary market.
  • Professional Management: These securities are professionally managed by experienced CLO managers who make decisions with the intent to get higher returns while reducing the risk.
  • Credit Enhancement: CLOs have various tranches according to different credit risk levels. This offers additional protection against losses that can occur due to defaults in the underlying loans.

Risks of Collateralised Loan Obligations

These come with the following risks:

  • Credit Risk: The underlying loans in CLOs have high credit risk and since these loans are given to non-investment grade borrowers, there are high chances of default. A high number of defaults can lead to significant losses.
  • Interest Rate Risk: CLOs are structured like fixed-income securities having a set rate of interest. If the interest rate increases, the securities’ value may go down.
  • Prepayment Risk: The borrower can pay off the underlying loan earlier, which can decrease the potential returns of CLO investors, especially if they are expecting a particular interest income in the long run.
  • Residual Liquidity Risk: It may be hard to get buyers for CLO securities when the market is unstable, making it difficult to sell investments or exit from the positions.
  • Complex Investment Vehicle: Since there are different tranches, risk levels and payment structures in CLOs, it can be difficult to understand the associated risks and make the right investment decisions. 

Now that you know the CLO meaning, benefits, risks and more, you can explore this investment avenue to get potential returns. In case you need funds for investments or financial emergencies, you can get up to ₹5 lakhs with an Instant Personal Loan from Fibe. 

You enjoy affordable interest rates, a simple online application process and minimal paperwork requirements. Download the Personal Loan App or log in to our website and meet your needs easily.

FAQs on Collateralised Loan Obligations (CLOs)

What are collateralised loan obligations in simple terms?

CLOs are securities supported by a collection of loans. In simple words, they are repackaged loans that investors purchase.

What is an example of a collateralised obligation?

Consider this collateralised loan obligation example: A company approached a bank to borrow ₹100 crores. The bank will approve the loan but will reduce its risk by looking for other lenders to contribute to the loan. The lender purchasing these loans will be the CLO manager and other lenders pooling into it will be the investors.

How many loans are in a CLO?

CLOs generally consist of 150-200 loans.

Income Certificate Online Download – Complete Process Explained

An income certificate is an official document that shows your annual income from all sources. It is needed for government schemes, subsidies, reservations and fee concessions. You can now easily download income certificate online in just a few minutes through your state’s portal. It is issued by authorised officers like the tehsildar or collector.

Keep reading to learn how to download income certificate and check income certificate status.

Who Issues an Income Certificate?

Income certificates are issued by authorised government officers in your state. This is usually done by:

  • Tehsildar
  • Sub-Divisional Magistrate (SDM)
  • District Magistrate (DM)
  • Deputy Commissioner (DC)
  • Collector
  • Revenue Circle Officer

They review your documents and officially confirm your annual income.

Income Considered for Income Certificate

When the government issues an income certificate, it adds up the yearly earnings of all family members living together. This includes parents, spouse, unmarried children and dependent siblings. Here’s what’s included: 

  • Salary and pension
  • Daily wages or labour income
  • Income from business or profession
  • Bonuses, commissions and incentives
  • Interest earned from bank deposits
  • Rental income from houses or shops
  • Dividends from shares or mutual funds
  • Profit from selling property or other assets
  • Gifts or inheritances, when they are received regularly

What’s Excluded From Income?

These components are not added while calculating your income:

  • House Rent Allowance (HRA)
  • Travelling Allowance (TA)
  • One-time payments like honorarium or festival gifts

How is an Income Certificate Calculated?

The issuing officer adds up your family’s yearly earnings using the documents you submit. The calculation is done in a simple, step-by-step way:

  • Family earnings: The authority adds the income of all earning members. This includes salary, pension, business income and other regular earnings of parents, spouse and unmarried siblings.
  • Document verification: Your salary slips, Form 16, bank statements, rent receipts and other proofs are checked to confirm the income declared.
  • Recurring income only: Only stable, ongoing income is included. One-time payments, allowances or occasional earnings are usually excluded.
  • Annual calculation: The certificate reflects income for the current financial year, so you may need to update it every year to download income certificate online again.

How to Apply Online for an Income Certificate?

Here’s how to get income certificate online by following these simple steps:

Step 1: Visit your state’s official e-district portal

Step 2: Create a login using your mobile number

Step 3: Go to ‘Apply for Income Certificate’

Step 4: Fill in your personal details and family details

Step 5: Upload the required documents

Step 6: Submit the form and save the acknowledgement number

You should keep these details ready to download income certificate online:

  • Name, age, gender and DOB
  • Address with district, taluka and village
  • Aadhaar number
  • Caste category (SC/ST/OBC)
  • ID proof details

Also, you may need to pay a small fee when applying for the certificate. The amount depends on your state. Once you submit the form, the income certificate is usually issued within 10 to 15 days.

How to Download Income Certificate Online?

Once your application is approved, you can download income certificate using these steps:

Step 1: Visit the state portal and log in with your mobile number

Step 2: Click ‘Track Application’ or ‘Get Income Certificate Status’

Step 3: Enter your 16-digit application number

Step 4: If the status shows Approved, click Download

Step 5: Your certificate will open as a PDF

Step 6: Save or print the file for future use

Documents Required to Get an Income Certificate

You will need these few basic documents to apply for and download income certificate:

Document TypeAccepted Proofs
ID ProofAadhaar, PAN, Voter ID, Driving Licence, Ration Card
Address ProofAadhaar, Driving Licence, Passport, Ration Card
Income ProofSalary Slip, Form 16, Parent Income Certificate, Bank Statement
PhotoPassport-size photograph
OtherAffidavit declaring details are true

Validity of Income Certificate

  • Income certificates are usually valid for 1 financial year
  • You must renew it every year if your state requires it
  • You can use an old certificate to apply for an updated version

Most lenders also require income certificates as proof of income to get a loan. But with the FIbe  Instant Cash Loan, you can apply on the app or website with minimum documents and get ₹5 lakhs instantly. You can enjoy pocket-friendly interest rates and a tenure going up to 36 months. 

That’s not all. A personal loan has no end-use restrictions, so you can utilise the amount to meet any requirement. Download our Personal Loan App or go to our website to register and apply in just a few clicks. 

FAQs on Online Income Certificate 

Is it possible to download an income certificate using an Aadhaar number?

Yes, you can complete the online income certificate download process using your Aadhaar number.

Is the certificate valid all year or do I need to renew it annually?

Income certificates are usually valid for the financial year mentioned on the document. Some states require renewal every year. So always check the validity printed on your certificate.

How do I track the status of my income certificate application?

Log in to your state portal, enter the acknowledgement number in the ‘Track Application’ section to see whether it is pending, under review or approved. This is the easiest way if you want to know how to check income certificate status quickly.

Can I apply offline if the online portal is not working?

Yes. You can visit your nearest Tehsildar office and submit a physical form with supporting documents. You may need to pay a small fee, depending on your state.

Reasons for Personal Loan Requirements: 8 Practical Instances

The reasons for personal loan requirements are many as there are no end-use restrictions on the funding you receive. As such, you can tackle several needs without any hassles or financial strain.

Here are the top 8 instances where it can be an ideal option. 

When Should Take Out a Personal Loan?

Know more about various instances when a personal loan can be beneficial:

  1. Financing Education

Higher education, whether within the country or abroad, can require a significant amount of funds. You generally have to pay for:

  • Cost of tuition
  • Accommodation 
  • Food 
  • Travel 
  • School supplies 

As you cannot delay the payment of these services, opting for a personal loan and ensuring that you have the funds ready whenever needed is ideal.

  1. Home Renovation

This is another common reason why a personal loan is popular. You can use the funds to make necessary repairs or buy essential appliances. You can also remodel, refurnish, or renovate your home. 

  1. Cost of Moving Your Residence

Moving houses is a costly endeavour that requires substantial funds in a short period. Additionally, it may call for several different types of expenses, such as: 

  • Packers and cleaners
  • Transportation
  • Small fixes 

Since personal loan funding has no restrictions on how you can use it, it becomes an ideal option you can rely on.

  1. Making Down Payments 

If you are buying a vehicle or home, you often need to pay a substantial amount upfront. While saving up for it is an option, it may take some time. On the other hand, personal loans are available instantly and at affordable rates, making them a convenient option. 

  1. Meet Travel Goals

While you can save up for your travel goals, the waiting time is more. Instead, you can opt for personal loan funding and go on family or solo vacations whenever you want, without any financial constraints. With a personal loan, you can pay for several things, such as:

  • Travel and accommodation
  • Food
  • Adventure activities
  • Sightseeing 

Also Read: Debt Consolidation With Instant Loans

  1. Debt Consolidation

Paying multiple EMIs can be stressful and challenging, especially when the due dates are different. Additionally, if you miss any payment, it will negatively affect your credit score and attract penalties that can further burden your finances. But with personal loans, you can avoid these expenses as you can settle all dues with the borrowed amount and would have to keep track of only one EMI. 

  1. Wedding Expenses

Planning a wedding can be costly and paying for it from your pocket can mean depleting your savings or stretching your budget. However, personal loans help you avoid that and ensure you have ample funds to finance all costs.  

  1. Medical Emergency

With rising inflation, medical costs have also gone up and emergencies can strain your budget. Additionally, arranging funds can be stressful and time-consuming. However, personal loans are generally available quickly and at affordable rates, making them an ideal option.

Lastly, a personal loan has no end-use restrictions. So, you aren’t limited by the reasons or uses stated above. You can use the funds for any small or big expenses, such as maintaining working capital, purchasing a refrigerator, washing machine, laptop, mobile phone, AC and more. 

Also Read: Benefits of a Personal Loan

Why is a Personal Loan a Good Option? 

If you’re wondering the reasons that justify the need for a personal loan, here are some: 

  • It allows you to get credit without collateral
  • It has comfortable repayment options
  • It will enable you to access funds instantly
  • It has competitive interest rates, making it affordable
  • It is a versatile financing option
  • It can help you build your credit score with timely repayment
  • It has a hassle-free application process 

Keeping these reasons for personal loan requirements in mind, remember to choose the right lender. This will help ensure you have a comfortable and stress-free experience. Apply with lenders who offer attractive rates, execute a simple procedure and levy low or no additional costs. 

Fibe is one among the leading lenders that offers all this and more. With Fibe’s Instant Cash Loan, you can get up to ₹5 lakhs at an affordable interest rate starting at 2% per month. You can also enjoy minimal documentation, flexible tenure, 2-minute disbursal and a straightforward application process along with no foreclosure charges. Download the Fibe Personal Loan App on your smartphone or visit our website to apply now! 

FAQs on Reasons for Taking Personal Loans

What are common reasons for personal loan requirements?

You can choose this loan option for several purposes, such as: 

  • Consolidating existing debts
  • Renovating home
  • Maintaining working capital for your business 
  • Financing wedding expenses 
  • Meeting medical emergencies 

What is the best reason to say when applying for a loan?

In personal loans, lenders generally don’t ask about the purpose. However, if you are asked this question, you should say the actual reason to ensure transparency and avoid problems or confusion. 

Why do people take personal loans in India?

The funding comes with no restrictions, allowing the borrower to address any need they have, making it a popular option. Additionally, people rely on this option when they need funds but don’t have collateral or don’t want to use their savings.

Is it good to take a personal loan?

Yes, as it allows you to arrange restriction-free funds without much hassle. You can also improve your credit score by repaying on time.

Easy Guide to Buy Mobile on EMI Instantly

Buying a high-end smartphone doesn’t always mean paying the full amount upfront. With EMI options, you can split the cost into smaller payments. This makes it easier to fit into your budget.

Whether it’s the latest flagship or a feature-packed mid-range phone, EMI for mobile phones makes it affordable. And it helps you avoid straining your savings.

And if you’re wondering what documents are required for EMI for mobile, the process is simple. You just need basic KYC documents like ID and address proof to get started.

Read on to learn more about this facility and its benefits.

Steps to Buy Mobile Phone on EMI

Buying a phone on EMI is a simple process. Simply follow these steps to buy phone on EMI. 

  • Step 1: Select your preferred brand and model
  • Step 2: Explore your financing options once you have zeroed in on a device
  • Step 3: Check the eligibility and document requirements  
  • Step 4: Apply for a mobile loan 
  • Step 5: Select a suitable tenure for repayment
  • Step 6: Complete the purchase 

This step-by-step guide makes it easy to buy a phone on EMI without straining your finances.

Also Read: Buy an iPhone 15 on EMI

Features of a Mobile Loan

Before you decide to buy phone on EMI, consider these key features. 

  • Full loan coverage: Get up to 100% of your smartphone’s cost as a loan. This depends on your eligibility and the lender’s criteria. 
  • Quick application: You can apply online in minutes. Instant checks confirm your eligibility right away.
  • Clear loan terms: Review loan terms like charges, rates and tenure before applying. This will help you get the best deal. 
  • Flexible tenure options: Most lenders offer flexible tenure options to adjust your EMI. Pick a repayment period that suits your budget. 
  • Auto-debit facility: Set up auto-debit and never miss an EMI. The amount is deducted automatically every month.
  • Low interest rates: Interest rates are usually low. They may differ from one lender to another.
  • Minimal documentation: Just basic KYC is enough to get started. Existing customers often get faster approval.

Eligibility Criteria to Get a Mobile on EMI

To qualify for a mobile loan, you usually need to meet these basic conditions. Different lenders may have slightly different criteria, but in general:

  • You need to be an Indian resident
  • You must fall within the age group of 21 to 55 years
  • You should have a monthly in-hand income of at least ₹18,000 in metro cities
  • You should have a minimum monthly salary of ₹15,000 for non-metro residents 

These criteria help lenders assess your ability to repay the EMI on time.

Documents Required for a Mobile Loan

Once you meet the eligibility requirements, you’ll need to submit a few documents to complete your application. These are the common documents required for EMI phone plans:

  • KYC documents such as Aadhaar, PAN or driver’s licence
  • Valid address proof
  • Salary slips or bank statements from the last 6 months

Keep these ready to speed up your mobile loan approval.

Checking these criteria before applying helps you avoid rejection and get quick approval. Use the Online Personal Loan EMI Calculator to calculate your loan amount, tenure and other details. Once you have decided on suitable terms, you can apply for the best offer within your budget. 

One feasible credit option is the Fibe Instant Cash Loan. You can get up to ₹5 lakhs for your mobile purchase or other financial requirements at pocket-friendly interest rates. What’s more, the application process is straightforward, with minimum documentation and easy-to-meet eligibility criteria. Download our Personal Loan App or apply for an EMI for mobile phone on our website. 

FAQs on Mobile Loans

Is it safe to buy a phone on EMI?

Absolutely! It is a safe option, but you must select a reliable lender. Fibe is a trustworthy NBFC licensed by the RBI, where you can get personal loans at affordable rates.

How can I buy a phone through EMI?

You can buy a phone on EMI through options like credit cards, consumer durable loans or instant personal loans. If you’re shopping online, just pick the EMI option at checkout. If you’re buying from a store, apply there with basic documents.

How to take a phone on an instalment?

Choose the EMI option while making your purchase. Share your ID and address proof with the lender. Then pick a repayment plan that suits your budget. If you meet the basic eligibility requirements, approval is usually instant.

Steps to Get Loan Against a Cash Salary in India

If you receive your salary in cash, you might wonder whether you can still get a personal loan. The good news is yes, you can! Getting a personal loan against cash salary is absolutely possible with the right documents and approach. Many lenders now accept alternate income proofs like bank statements, ITR, employer certificates, or even income affidavits to verify your earnings.  

Whether you’re looking for a loan against salary to meet urgent expenses or an instant personal loan for cash salary to cover medical or personal needs, there are multiple ways to apply – even without salary slips. Here’s everything you need to know. 

Ways to Get a Personal Loan Without Salary Slips 

1. Provide Your Bank Statements 

If you receive cash salary, deposit it regularly into your bank account. Your bank statements can then act as proof of income. Most lenders require 3–6 months’ statements to evaluate your repayment capacity. This is one of the easiest ways to get a loan on cash salary without salary slips. 

2. Submit Your ITR (Income Tax Return) 

Your ITR is one of the strongest proofs of income for cash-salaried employees. It shows your annual earnings and tax compliance, giving lenders confidence about your financial stability. If you haven’t filed your ITR yet, consider starting this practice – it not only makes you eligible for a personal loan against cash salary but also keeps you compliant with tax rules. 

3. Show Your Offer Letter or Salary Vouchers 

Your appointment letter, salary vouchers, or even an income affidavit can be submitted as alternate proof. These documents must clearly mention your job title, monthly pay, and employment terms. If your lender doesn’t accept offer letters alone, request salary vouchers for the past 3–6 months from your employer. 

4. Get a Letter from Your Employer 

An employer certificate or letter confirming your employment status and salary is another valid proof. Make sure it is on the company letterhead, has the official seal, and is signed by an authorised person. 

5. Use Alternate Income Proofs 

Apart from the above, you can also submit supporting documents such as: 

  • Income affidavit (stating your monthly salary) 
  • Rent agreement (if you earn from rental income) 
  • Proof of additional income sources (like freelance payments or commissions) 

How to Apply for a Personal Loan with a Cash Salary 

Here’s a simple step-by-step process to apply for a loan on cash salary: 

  1. Check Eligibility 
  1. Minimum age: 21 years (varies by lender) 
  1. Proof of income: Bank statements, ITR, employer certificate, salary vouchers 
  1. Good credit score (ideally 700+) 
  1. You can also apply with a co-applicant who has a banked salary to boost your approval chances. 
  1. Gather Documents 
  1. Identity proof (PAN, Aadhaar) 
  1. Address proof (Utility bill, Aadhaar, Rent agreement) 
  1. Bank statements (3–6 months) 
  1. ITR documents or income affidavit 
  1. Employer letter/salary vouchers 
  1. Choose the Right Lender 

 Look for lenders that offer instant personal loans for cash salary applicants and accept alternate proofs. 

  1. Apply Online 

 Most lenders, including Fibe, let you apply completely online. Fill in your personal and employment details, upload the documents, and submit the form. 

  1. Verification & Disbursal 

 Once your documents are verified, your loan against salary gets approved, and the amount is credited directly to your account – often within 24 hours. 

Repayment Terms You Must Know 

Before taking a personal loan, check: 

  • Tenure: Usually ranges from 3 months to 48 months 
  • EMI amount: Make sure it fits within your monthly budget 
  • Prepayment charges: Some lenders allow early repayment without fees 
  • Interest rates: Compare lenders for the best rate 

Maintaining timely repayments helps improve your credit score and makes it easier to get future loans. 

Why Choose Fibe for Your Loan? 

With Fibe, you can get up to ₹5 lakhs even if you receive your salary in cash. We accept multiple income proofs and keep documentation minimal. Our process is 100% digital with no hidden charges and affordable EMIs. Simply download the Fibe app or apply on our website and get funds quickly. 

FAQs on Personal Loan Against Cash Salary 

Can I get a personal loan if I get a salary in cash? 

Yes, you can. Use bank statements, ITR documents, employer letters, or salary vouchers to prove your income. 

Can I get a loan if I earn in cash? 

Yes. By depositing your cash salary into your bank account and filing ITR, you can easily qualify for a personal loan. 

Can I get a personal loan without pay slips? 

Yes. Provide alternate income proofs like bank statements, employer certificate, ITR, or income affidavit.