Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Housing loan requirement

362 views

Save Share

rohith chary

49 Points Posted on 23 November 2022

One of my client is on verge going for loan, as the banker is seeking for income tax returns of last two financial years . Requirement of loan is of 2000000 as such . So my query is what could be relevant amount can I disclose for such loan requirement .Please guide me through this

Replies (2)

Quick Summary

When applying for a housing loan of £2,000,000, banks require more than just your income tax returns for the last two financial years. While you can declare your income, lenders will verify it against supporting documents like your bank statements and Form 26AS. Simply declaring a high income in your tax return isn't enough; you need concrete evidence to back it up for loan approval.

Manoj BG

Tax Professional and in Service

1637 Points Posted on 24 November 2022

Housing loan never processed based on only income tax returns. So even if you disclosed Rs.1 crore as turnover/salary in your income tax return and your Form 26AS or your bank statement doesn't support what is mentioned in your income tax return, bankers would ask you follow up question as to document in support of your income.

Tax return is something we self declare and shall always be supported by underlying documents whether or not asked by tax authority. It is easy to declare any income in your ITR but if you wish to get your loan sanctioned, you must need to produce some sort of solid evidence like credit entry in bank statement, form 26AS and so.

Regards,

Manoj