Understanding what is self-assessment tax is essential to comply with the country’s taxation rules and avoid any consequences of non-payment or delayed payment. The government collects income tax in 3 ways:
Tax Deducted at Source (TDS)
Advance Tax
Self-Assessment Tax (SAT)
Read on to learn more about the SAT, how to calculate it and how to make the payment.
Meaning of Self-Assessment Tax
This is the amount that an individual pays on their income after deducting TDS and advance tax for the financial year. Individuals who need to file their ITR need to pay this tax beforehand.
You need to pay it when the TDS or advance tax amount is lower than the actual tax liability. The difference may arise due to several reasons, such as:
When you fail to consider an income while paying the advance tax
In case the TDS amount that you deducted is not accurate
If a salaried employee earns a high income from investments, which the employer doesn’t account for
Steps to Calculate Self-Assessment Tax
Here are the steps you to follow to calculate your SAT:
Step 1: Compute your income from various sources, including salary, capital gains, profession, etc.
Step 2: Consider the exemptions and tax deductions, such as Section 80C, 80D, etc.
Step 3: Compute the payable tax on the balance according to the income slab you fall under
Step 4: Calculate the SAT using the formula given below
[(A+B) – (C+D+E+F)]
Here,
A is the total tax payable
B is the interest under section 234A/234B/234C
C is the tax relief under Section 90/90A/91
D is the MAT Credit under Section 115JAA
E is the TDS/TCS
F is the advance tax
You can also use an online calculator for accurate and quicker results. To use the tool, you will just need to input the relevant income, exemption, deduction and tax details.
Know How to Pay Self-Assessment Tax Online and Offline
Follow these steps to pay for your SAT online:
Step 1: Log in to your account on the Income Tax e-filing portal
Step 2: Navigate to the ‘e-File’ tab and click on ‘e-Pay Tax’
Step 3: Click on ‘New Payment’
Step 4: Choose the ‘Income Tax’ option and click on ‘Proceed’
Step 5: Select the ‘Assessment Year’ and ‘Self-Assessment Tax (300)’ and click on ‘Continue’
Step 6: Type in the tax amounts, click on ‘Continue’ and pay through your preferred mode
Step 7: Click on ‘Download’ to download the Challan once you complete the payment
You need to follow these steps to pay your SAT offline:
Step 1: Download the tax challan 280 from the Income Tax website and print it out
Step 2: Provide your PAN, assessment year, address, mobile number and email ID
Step 3: Go to the bank and submit the filled challan physically and pay through cash, cheque or demand draft
Step 4: Collect the challan’s receipt from the bank after you complete the payment
Consequences of Non-Payment of Self-Assessment Tax
Here is what happens when you do not pay your SAT:
You will be responsible for a high interest liability
You might need to face penal consequences
ITR will be considered a defective return
Imposition of late fees, penalty and interest for taxation purposes
Knowing these essential details, strive to calculate and pay your tax on time. If you need financial assistance for any planned or unforeseen expenses, including funds for paying taxes, you can get an Instant Personal Loan from Fibe. You can get up to ₹5 lakhs at affordable rates in just a few minutes with minimal requirements.
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FAQs on Self-Assessment Tax
What is self-assessment tax with an example?
Here is an example of SAT:
Taxable income= ₹3 lakhs
Applicable tax rate= 30%
Then, the SAT would be ₹90,000
Is self-assessment tax compulsory?
Yes, you need to pay this tax if you are required to file an income tax return and your TDS/advance tax is lower than your actual tax liability.
How do I check my self-assessment tax?
You can check your SAT by logging on to the ‘e-Filings’ portal on the official Income Tax website.
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
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.
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.
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.
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.
Basis
ECS
NACH
Operational Model
A regional clearing system managed by the RBI and is applicable within the circle where implemented
NACH is a part of ECS system, managed by NPCI and applicable to all banks and financial institutions
Mandate Verification
It doesn’t generate any unique transaction reference number
This system generates a unique reference number for each transaction
Transaction Timings
These payments are processed on a certain date as per the predefined cycle of payment
It operates on a scheduled basis and transactions are processed in batches during specific time slots
Settlement Time
3-4 working days
A 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
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
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
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
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 SignatureCertificate
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 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.
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.
This guide covers the complete income certificate process where you will know how to apply online, check your income certificate application status and download your certificate from your state portal. The process typically takes 10 to 15 working days.
Need to download your income certificate quickly? You can do it entirely online through your state’s official e-district portal — no office visit needed. An income certificate is an official government document that confirms your household’s total annual income from all sources. It is issued by authorised revenue officers such as the Tehsildar or District Magistrate and is required for government schemes, scholarships, fee waivers and reservations.
The income certificate process typically takes 10 to 15 working days from the date of application. Once approved, you can complete the income certificate online download in just a few clicks from the same portal.
Read on for a step-by-step guide on how to apply, track your income certificate application status check and download your certificate.
What is an Income Certificate?
An income certificate is an official document issued by the state government that records the total annual income of a person and their family. It covers all income sources — salary, business earnings, rent, interest and more — and serves as proof of financial status for various government and institutional purposes.
Real example: Consider Priya Sharma, a school teacher from Pune whose daughter is applying for a state merit-cum-means scholarship. The college requires an income certificate to confirm the family’s annual income is below ₹6 lakhs — the eligibility ceiling for that scholarship. Without the certificate, the application cannot proceed. Priya applied online through Maharashtra’s Aaple Sarkar portal and received her certificate in 12 days.
Income certificates are most commonly required for:
Educational scholarships and fee concessions
Government job reservations (EWS, OBC categories)
Subsidised housing and ration card applications
Old age pension and widow pension schemes
Below Poverty Line (BPL) card eligibility
Hospital fee waivers and government health schemes
Who Issues an Income Certificate?
Income certificates are issued by authorised government officers in your state. Depending on your state and district, this is typically one of the following:
Tehsildar
Sub-Divisional Magistrate (SDM)
District Magistrate (DM)
Deputy Commissioner (DC)
Collector
Revenue Circle Officer
These officers review your submitted documents and officially confirm your declared annual income. The issuing authority varies by state; in Maharashtra it is the Tehsildar, while in Delhi it may be the SDM. Always check your specific state’s e-district portal to confirm which officer issues the certificate in your district before you apply.
Uses of an Income Certificate
An income certificate is one of the most widely required documents for government-linked benefits. Here is a quick look at where it is used:
Purpose
Where It’s Required
Educational scholarships
Schools, colleges and universities for merit-cum-means scholarships
Fee concessions
Government colleges under SC/ST/OBC/EWS quotas
Government job reservations
EWS category jobs (annual family income below ₹8 lakhs)
Subsidised ration card
State food department for BPL/AAY card issuance
Old age / widow pension
District welfare office for state pension schemes
Hospital fee waivers
Government hospitals for subsidised treatment
Housing schemes
PM Awas Yojana and state housing board applications
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Did You Know?
The EWS (Economically Weaker Section) reservation introduced in 2019 requires applicants to submit an income certificate confirming annual family income below ₹8 lakhs. Without this, the EWS category claim cannot be processed for admissions or government jobs.
What Income is Considered for an Income Certificate?
When calculating income for the certificate, the issuing authority adds up the yearly earnings of all family members living together including parents, spouse, unmarried children and dependent siblings. The following income sources are included:
Salary and wages (including daily wages and labour income)
Pension income
Business or professional income
Consultancy charges
Income from real estate (rental income from houses, shops or land)
Income from real estate transactions (profit from property sale)
Bonuses, commissions and incentives
Interest earned from bank deposits or fixed deposits
Dividends from shares or mutual funds
Gifts or inheritances received on a regular basis
What’s Excluded From Income?
These components are generally not counted:
House Rent Allowance (HRA) received as part of a salary package
Travelling Allowance (TA) from an employer
One-time payments such as honorarium or festival gifts
How is Income Calculated for the Certificate?
The issuing officer uses a simple, document-backed method to arrive at the annual income figure:
1. Add all family earnings: The authority combines income of all earning members — salary, pension, business and any other regular sources.
2. Verify with documents: Salary slips, Form 16, bank statements, rent receipts and IT returns are cross-checked against the income declared.
3. Include only recurring income: One-time payments, allowances or irregular earnings are excluded.
4. Apply the financial year: The certificate reflects income for the current financial year.
Quick Calculation Example
Ramesh Gupta from Jaipur earns ₹3.6 lakhs annually as a government clerk. His wife earns ₹1.2 lakhs from a tailoring business. Their combined household income is ₹4.8 lakhs per year — which is what will appear on the income certificate after the officer verifies both salary slips and business income proof.
How to Apply Online for an Income Certificate?
Here is how to complete the income certificate process online through your state’s e-district portal:
Go to your state’s official e-district portal (e.g. Aaple Sarkar for Maharashtra, eSathi for UP, Seva Sindhu for Karnataka).
Register or log in using your mobile number and OTP.
Navigate to ‘Revenue Department’ or ‘Citizen Services’ and select ‘Apply for Income Certificate’.
Fill in your personal details (name, age, gender, date of birth), address (district, taluka, village) and Aadhaar number.
Enter family member details and declare combined annual income.
Upload the required documents (see the documents table below).
Pay the nominal application fee, if applicable in your state.
Submit the form and note your acknowledgement number carefully — you will need it to check your income certificate application status.
Pro Tip
Keep soft copies of all documents ready before starting the application. Most state portals accept JPG and PDF files under 200 KB per document. Having them ready saves time and reduces the chance of a mid-session timeout.
Details to Keep Ready
Full name, date of birth, gender and Aadhaar number
Permanent address with district, taluka and village/ward
Caste category (General / SC / ST / OBC / EWS)
Details of all income sources for each earning family member
Application fees vary by state — most states charge between ₹10 and ₹50. The certificate is usually issued within 10 to 15 working days of a successful application.
How to Download Income Certificate Online?
Once your application is approved, here is how to complete the income certificate online download:
Visit your state’s e-district portal and log in with your registered mobile number.
Click on ‘Track Application’ or ‘Download Certificate’ in the dashboard.
Enter your 16-digit application number or acknowledgement number.
Check the status — if it shows ‘Approved’ or ‘Issued’, a download button will appear.
Click ‘Download’ to open your certificate as a digitally signed PDF.
Save the file to your device or print it directly for use.
Digitally Signed Certificates
Most state portals now issue digitally signed certificates with a unique QR code. Authorities can scan this to verify authenticity instantly — so a printed copy without an official stamp is still valid.
How to Check Income Certificate Application Status Online?
Tracking your income certificate application status check is straightforward:
Log in to your state e-district portal with your mobile number.
Go to ‘Track Application’ or ‘Application Status’.
Enter your acknowledgement number from your application receipt.
The portal will display the current status of your application.
Application not approved — check remarks and reapply
If your application stays in ‘Under Verification’ for more than 15 working days, visit your nearest Tehsildar office with your acknowledgement slip to follow up in person.
Documents Required to Get an Income Certificate
Document
Purpose
Aadhaar card
Identity and address proof
Ration card or family register
Proof of family members and residency
Salary slips (last 3 months)
Income proof for salaried individuals
Form 16 or ITR
Annual income proof for salaried / self-employed
Bank statements (last 6 months)
Cross-verification of income and transactions
Affidavit of income (self-declaration)
Required in most states for self-employed applicants
Rent receipts or lease agreement
Income proof for rental income earners
Caste certificate (if applicable)
Required for SC/ST/OBC applicants
Passport-size photographs
As specified by the state portal
Validity of an Income Certificate
Income certificates are generally valid for 1 financial year (April to March)
You may need to renew the certificate every year if your state requires annual updates
Some central government schemes and scholarships accept certificates up to 3 years old — always check the specific scheme’s requirements
A previously issued certificate can be used as supporting evidence when applying for a fresh one
If your income changes significantly (new job, salary revision, business closure), apply for a fresh certificate even if the old one is still valid
Need Funds While Your Certificate is Being Processed?
If you need financial support right now, a Fibe Instant Cash Loan lets you borrow up to ₹10 lakhs with minimal documentation, pocket-friendly interest rates and a flexible tenure of up to 36 months. No end-use restrictions — use it for education expenses, home repairs, medical needs or any other requirement. Apply on the Fibe app or website in minutes.
FAQs on Income Certificate Download
1. Can we download income certificate online without going to a government office?
Yes, the entire process right from application to download can be completed online through your state’s e-district portal. You only need to visit a government office if your application is flagged for document verification or if the portal is temporarily unavailable.
2. How long does it take to get an income certificate after applying online?
The income certificate process typically takes 10 to 15 working days after you submit your application online. Processing times may vary by state. Maharashtra and UP, for instance, often process within 7 to 10 days for complete applications.
3.Is it possible to download an income certificate using an Aadhaar number?
Yes, you can use your Aadhaar number to log in and track or download your certificate on most state portals. Some states, like UP’s eSathi, also allow certificate retrieval using just the Aadhaar-linked mobile number.
4. How do I get an income certificate for a student scholarship?
Apply through your state’s e-district portal and select ‘Income Certificate’ under revenue services. For scholarships, the certificate must typically show income below a specified limit (e.g. ₹6 lakhs for many central scholarships). Submit salary slips or ITR of both parents as income proof. The issued certificate is then uploaded to the scholarship portal during the application process.
5.Is income certificate required for a government job application?
Yes, for EWS (Economically Weaker Section) category reservations in government jobs, an income certificate is mandatory. It must confirm that the applicant’s family income is below ₹8 lakhs per annum. The certificate must be issued in the financial year of application.
6. Is the certificate valid all year, or do I need to renew it annually?
Income certificates are typically valid for the financial year mentioned on the document. Some states require annual renewal, while certain scholarship and scheme portals accept certificates up to 2 to 3 years old. Always check the validity printed on your certificate and the requirements of the specific scheme.
7. How do I track the status of my income certificate application?
Log in to your state portal and go to the ‘Track Application’ section. Enter your acknowledgement number to see whether your application is pending, under review or approved. This income certificate application status check can be done any time after submission without needing to visit an office.
8. Can I apply offline if the online portal is not working?
Yes. Visit your nearest Tehsildar office with a filled application form and supporting documents. You may need to pay a small processing fee. Offline applications may take slightly longer to process than online applications.
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:
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
Convert your mobile purchase into easy monthly instalments using your credit card. Most banks offer instant EMI conversion at checkout with flexible tenures and competitive interest rates.
Debit Card EMI
Don’t have a credit card? No problem. Select banks allow you to buy a smartphone on EMI using your debit card, with minimal documentation and instant approval.
No-Cost EMI Options
Many online and offline retailers provide no-cost EMI deals where you pay only the product price in instalments without any added interest. This is ideal for budget-friendly purchases.
Buy Now, Pay Later (BNPL)
BNPL services let you purchase your mobile instantly and repay later in small chunks. It’s a quick and hassle-free option, especially for smaller ticket sizes.
Instant Personal Loans
Opt for a small-ticket personal loan to finance your mobile purchase. Platforms like Fibe offer quick approvals and flexible repayment options, making it convenient to buy high-end smartphones.
Consumer Durable Loans
Available through retailers or fintech partners, these loans are specifically designed for gadgets like mobiles. They often come with zero or low interest and require minimal paperwork.
In-Store Financing
Visit offline stores that partner with NBFCs or banks to offer on-the-spot EMI options. You can walk out with your new phone the same day with quick verification and approval.
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.
Tips for Best EMI Deals
Smart strategies to help you secure lower EMIs, reduce interest costs and choose a loan that fits your financial comfort.
Compare interest rates across multiple lenders before finalising
Check the total cost of the loan, not just the EMI amount
Opt for a shorter tenure to reduce overall interest payout
Maintain a good credit score to unlock better EMI offers
Look for zero or low processing fee options
Avoid taking the maximum eligible loan amount unnecessarily
Choose flexible repayment options that suit your cash flow
Watch out for hidden charges like prepayment or late fees
Use EMI calculators to plan your repayment in advance
Negotiate with lenders if you have a strong credit profile
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 ₹10 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 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.
What documents are required for mobile EMI?
Typically, you need basic KYC documents such as Aadhaar card, PAN card, and a valid address proof. Some lenders may also ask for income proof or bank statements, depending on eligibility and the EMI option chosen. With Fibe, you can get a mobile on EMI with minimal documentation. Basic KYC like your Aadhaar and PAN is usually enough. Since the process is fully digital, there’s no heavy paperwork — just quick verification for faster approval.
How can I purchase a phone on EMI?
You can buy a phone on EMI through credit cards, debit card EMI, or instant loan apps. Select EMI at checkout, choose a suitable tenure, complete KYC if required, and confirm the transaction to convert your purchase into easy monthly payments. With Fibe, you can easily purchase a phone on EMI by applying online, checking your eligibility, and selecting a suitable loan amount. Once approved, use the funds to buy your phone and repay in flexible monthly EMIs.
