What qualifies as proof of income?

Proof of income is a certificate that someone demands to verify your earnings and establish your capacity to pay. It was demanded of me by the bank when I was about to purchase a flat and applied for a home loan. I know how important it is to have income proof documents in today’s world. So let me explain about the proof of income documents.

What qualifies as proof of income?

1) Form 16

The certificate of tax deduction at source, Form 16/ 16A, is produced when the employer deducts tax on behalf of you. These certificates describe TDS / TCS for a variety of transactions involving the deductor and the deductee. Your employer is the only one who can download and issue Form 16. You are unable to obtain a copy of your Form 16.

2) 6-month Bank Statement

A bank statement, also known as an account statement, is a document published by a bank. It details the actions in your savings or current account over the course of a given time. Bank statements allow you to keep track of your activities and accounts.

3) Latest Salary Slip

A salary slip is a document that contains a full description of the main components of your paycheck as well as personal employment information. An employer issues it once a month in the form of a printed copy or a softcopy. A pay slip should ideally include a firm logo, as well as the name and address of the company.

Proof of income for self-employed:

1) Demat Account Holding Statement

The investment returns in your account are shown on the Demat holding statement.  Demat holdings or DP holdings are shares held by you as a clean amount in your beneficiary Demat account.

2) Net Worth Certificate

Chartered Accountants typically give a Net Worth Certificate. It is a statistic that reveals your or company's financial condition.

3) ITR - V Form

The ITR-V (Income Tax Return – Verification) is a form that you receive after submitting an ITR successfully. This ITR-V is commonly used as confirmation of your income. As a result, it is a crucial document.

This is your guide on the proof of income documents.