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Bank Loan

Niraj Agarwal (Student) (58 Points)

21 October 2018

Gross Total Income or Net Total Income -
Which one is taken
into consideration for Bank loan purpose.

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6 Replies

rahul (a) (1620 Points)
Replied 21 October 2018

net income......

Hitesh (Student) (3549 Points)
Replied 21 October 2018

Yes Net total income

1 Like

Rakesh Joshi (CA Final) (1272 Points)
Replied 21 October 2018

Net Income will be taken into consideration

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RAJA P M ("Do the Right Thing...!!!") (127549 Points)
Replied 21 October 2018

Yes... Net income.

In some the files it's taken to Total Income...

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Niraj Agarwal (Student) (58 Points)
Replied 21 October 2018

Since Net total income is after deduction under chapter VIA, which are not actually expenses.

Then also why Gross total Income not taken in account for bank loan purpose.

RAJA P M ("Do the Right Thing...!!!") (127549 Points)
Replied 21 October 2018

Dear Mr Niraj.,

It's called taxable income as

Net Income (-) Deductions = Taxable Income...

Taken loan and Your business income is Net income. Also banks view Your financial transactions.