Variation in received documents types and templates used for each document type poses challenge in developing a generic background noise removal approach for automatic text information extraction technique. Embodiments herein provide a method and a system for document classification and text information extraction. Time efficient and accurate text detection engine-based Region of Interest (ROI) technique is provided to accurately identify text region followed by a multi-layered neural network based architecture for enhanced classification accuracy to identify the type of document. A multistage image pre-processing approach is provided for efficient, effective, and accurate background noise removal from the classified document, which includes unsupervised clustering, identification, segmentation, masking, contour approximation, selective subtraction, and dynamic thresholding. Further, text information extraction is applied on the pre-processed image to determine co-relation between text information blocks and associate values with the labels for attributes to be extracted to extract final text.