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Pallavi (Querist)
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09 May 2011 I know ITR is a basis to assess loan repaying capacity of borrower. But what I exactly want to know is that If a person has claimed income under presumptive basis u/s 44AD n having Gross Receipts upto 500000. Then his tax liability will come out to be nil.
In such a case will bank provide home loan or not becoz somebody told me that since bank will not be able to access authenticity of his Net Profit he will not be granted loan as bank is not interested in gross receipts but it wants to knw the net profit to access earning capacity.

U S Sharma

U S Sharma (Expert)
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01 November 2011 44AD applicable or not, but net profit declared is mentioned on ITR acknowledgement, and thats the data bank needs, declaration of net profit under ITR is the basis of calculation of network and capability of borrower to repay the loan. so the ITR copy is enough for this purpose.

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