Itr fill up
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 November 2014
What is the procedure for obtainig term loan , cc and lc from bank
26 November 2014
Assessee is under tax audit and his income of business So ITR fill up of general details mention line the assessee liable to maintain books of acccount u/s 44A so answer to fill YES or No write
26 November 2014
for term loan and cc it depends on bank to bank so check with them their policy
26 November 2014
bhikha bhai your query is not clear
03 August 2025
Here’s a quick guide for your two queries:
1. Procedure for Obtaining Term Loan, Cash Credit (CC), and Letter of Credit (LC) from Bank
Term Loan:
Submit a loan application with a detailed business plan and financial documents (balance sheet, profit & loss account, cash flow, etc.).
Bank evaluates creditworthiness, collateral/security offered, and repayment capacity.
If approved, sign the loan agreement and provide security (fixed assets, property, etc.).
Bank disburses the loan as per agreed terms.
Cash Credit (CC):
Apply to bank with business financials and projected working capital needs.
Bank assesses your business, sets a credit limit for day-to-day expenses.
Interest charged only on utilized amount.
Facility is revolving, repay and withdraw as per need.
Letter of Credit (LC):
Used for import/export transactions.
Submit LC application with details of supplier and goods.
Bank issues LC to seller’s bank assuring payment on fulfillment of terms.
Client needs sufficient funds or credit limit for LC issuance.
2. ITR Filling Query Related to Tax Audit and Books of Account (Section 44AA)
If the assessee is liable to maintain books of account under section 44AA (which is typically mandatory if business turnover exceeds prescribed limits), you should answer “YES” in the ITR form where it asks if you maintain books of accounts.
Since the assessee is under tax audit (section 44AB), it confirms the books of account are maintained, so you must select YES.
1. Procedure for Obtaining Term Loan, Cash Credit (CC), and Letter of Credit (LC) from Bank
Term Loan:
Submit a loan application with a detailed business plan and financial documents (balance sheet, profit & loss account, cash flow, etc.).
Bank evaluates creditworthiness, collateral/security offered, and repayment capacity.
If approved, sign the loan agreement and provide security (fixed assets, property, etc.).
Bank disburses the loan as per agreed terms.
Cash Credit (CC):
Apply to bank with business financials and projected working capital needs.
Bank assesses your business, sets a credit limit for day-to-day expenses.
Interest charged only on utilized amount.
Facility is revolving, repay and withdraw as per need.
Letter of Credit (LC):
Used for import/export transactions.
Submit LC application with details of supplier and goods.
Bank issues LC to seller’s bank assuring payment on fulfillment of terms.
Client needs sufficient funds or credit limit for LC issuance.
2. ITR Filling Query Related to Tax Audit and Books of Account (Section 44AA)
If the assessee is liable to maintain books of account under section 44AA (which is typically mandatory if business turnover exceeds prescribed limits), you should answer “YES” in the ITR form where it asks if you maintain books of accounts.
Since the assessee is under tax audit (section 44AB), it confirms the books of account are maintained, so you must select YES.
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