What are assets and liabilities covered in a networth certificate?

Introduction

Networth Certificate is a document that includes all the assets and liabilities of an individual. It highlights its overall net worth. It is required for various purposes such as while applying for a loan or credit, visa, etc. To obtain your certificate you need to mention each and every single asset and liability in the form. In case of any mistake or inappropriate information your certificate can get canceled at the same time. To get a better understanding of assets and liabilities read this complete article. 

What is networth certificate?

A Networth certificate is a document that showcases all the assets and liabilities of an individual or company. This certificate is compiled and certified by a chartered accountant only. This certificate is generally required for various applications for the decision maker to gauge applicant’s financial health. This certificate works for better understanding of an individual's capacity to repay the loan or credit. Also it helps to know whether an individual can survive in foreign country if applying for a VISA. 

Lists of assets and liabilities covered in networth certificate

While applying for a networth certificate you need to mention each and every single detail of your assets and liabilities. In case of any mistake and false information, your certificate can be canceled. It is better to prepare a list of your assets and liabilities before applying for your certificate. Following is the list of assets and liabilities one need to mention while applying for networth certificate: 

Documents requirements for a networth certificate

To apply for the certificate, one needs to follow a basic procedure. This procedure includes some proofs and details, they are as follow:

• PAN Card, Aadhar Card, or any other identity card
• Passbook, electricity bill, or any other address proof 
• Contact Information (Email and Phone Number)
• Income Statement
• Balance Sheet 
• Bank statement to ascertain bank balance 
• Property Documents
• Investment Records
• Loan Documentation
• Tax Returns

Conclusion

A networth certificate is required for various purposes. It mainly helps in understanding the financial health of an individual as it includes all the assets and liabilities. To get your certificate you can consult with a CA who will guide you at every step from starting to end. You need to gather certain documents and pay a fee of ₹2500/- to get your certificate .

Frequently Asked Questions (FAQs)

• What are the document requirements for a networth certificate?

Documents required to obtain a certificate include identity proof, address proof, bank statement, balance sheets, property document, etc. 

• What is the fee for a networth certificate?

The fee for a networth certificate is just ₹2500/- with Bizfoc.

• How much time does it take to get networth certificate?

It takes only 24 hours to get your networth certificate. 

• Is UDIN mandatory to be put in a Networth Certificate by a Chartered Accountant ?

Yes, Networth Certificate is not valid unless valid UDIN is generated by CA and mentioned in the certificate. UDIN authenticates the certificate.