Common Requirements and Criteria for a Networth Certificate

Publishing Date: 03 Sep, 2024

Introduction

Common requirements and criteria for a networth certificate include certain documents such as bank statements, property records, investment, loan, etc. It requires all the assets and liabilities of an individual to calculate their net worth. It shows the overall financial health of an individual. This certificate is required for various purposes and it can be certified by a qualified CA. Read this article to know the criteria for networth certificate.

What is networth certificate?

A Networth Certificate is an official document that showcases the financial status of an individual or business entity. This certificate outlines all the assets and liabilities after analyzing the book of accounts, investment details and other records. To obtain a Networth Certificate, you need to assign a qualified chartered accountant who will certify this certificate.

Common requirements for a networth certificate

There are certain documents required for a networth certificate. These documents includes:

List of documents	Description
Identity card	It is need to identify individual’s identity such as a PAN Card, Aadhar Card, or any other
Address proof	To confirm the permanent address of the applicant, address proof is required. You can submit your passbook, electricity bill, or any other as proof.
Contact Information	To contact the applicant email, phone number or any other contact information is required
Income Statement	It is a document that outlines income & expenses of a company during a particular period.
Balance Sheet	It is a financial document that provides accurate assets & liability of an individual or a company.
Bank statement	It is an official document that summarizes your account activity including financial transactions over a certain period of time.
Property Documents	Each agreement relating to a property is required for asset verification
Investment Records	Any document published in relation to investment for highlighting the current worth of all investment
Loan Documents	A document that provide a comprehensive account of liability
Tax Returns	To provide a comprehensive overview of income & tax obligation

Networth Certificate Format

A networth certificate is a document which includes all the assets and liabilities of an individual. It shows the overall financial position of an individual or a company. A networth certificate can be obtained within 24 hours. The fee for the certificate is just ₹2500/-. The format of networth certificate includes the following details:

Name of the applicant
Date (when net worth is calculated)
Networth Amount
Place where the meeting is held
Name of accounting firm
Date (When the certificate is certified)
Asset detail
Liability detail

Make sure all the information provided by the applicant is valid and appropriate. Incase of any mistake or false information certificate can be canceled. The detailed format of networth certificate is as follow:

NETWORTH CERTIFICATE

Networth Certificate of Name Primary Person__________ (PAN:__________) residing at ( Complete Adress)__________ as on (date)__________ is ₹ __________ & _______(in words).

Detailed Bifurcation of Networth are as follows:

Schedule	Particulars	(in ₹)
A	Movable Assets	XXX
B	Immovable Assets	XXX
C	Liabilities	XXX
Total		XXX

This Certificate issued on the basis of documents submitted before us. This Certificate is issued for the purpose of ____________.

For

Chartered Accountants:

Partner Name

Partner

Membership No:

Date:

Place:

UDIN:

Schedule A: Movable Assets

Sr.	Particulars	(in ₹)
1	Bank Balance Balance as at XXXXXX	XXX
2	Fixed Deposit Balance as at XXXXXX	XXX
3	Gold Ornaments Market Value as at XXXXXX	XXX
4	Investment in Mutual Funds NAV as at XXXXXX	XXX
5	Insurance Policy Surrender Value as on XXXXXX	XXX
6	Vehicle Details Realization Value as on XXXXXX	XXX
Total Movable Assets		XXX

Schedule B: Immovable Assets

Sr.	Particulars	(in ₹)
1	Residential House Address: Valuation Report Value Dt. XXXXXX	XXX
2	Commercial Office Address: Book Value as on XXXXXX	XXX
3	Agriculture Land Address: Value as on XXXXXX	XXX
Total Immovable Assets		XXX

Schedule C: Liabilities

Sr.	Particulars	(in ₹)
1	Residential Loan Loan Details: Outstanding loan Dt. XXXXXX	XXX
2	Commercial Loan Loan Details: Outstanding loan Dt. XXXXXX	XXX
3	Car/personal Loan Loan Details: Outstanding loan Dt. XXXXXX	XXX
Total liabilities		XXX

For

Chartered Accountants

Partner Name

Partner

Membership No:

Date:

Place:

UDIN:

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

What are the common requirements to obtain a networth certificate?

Proofs 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/-.

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.

About the Author

CA Nayani Agarwal

All India Rank - 24

Nayani Agarwal is a Chartered Accounting who scored All India rank - 24 & 22 in CA final and CA intermediate respectively. She also scored an India rank - 21 in the Company Secretary foundation. She has overall 10 plus experience in banking and financial services. Her areas of expertise is startup consultancy, ESOP, Income Tax, GST, corporate Compliances & import expeort consultancy.