As someone who is either wanting to start a business or invest in business, a business loan can be a good option. This can help you with much needed business capital and fulfil your business objectives and goals. However, a business loan requires several necessary documents and conditions. One of them being, your ITR (Income Tax Return) form.
We will be understanding the importance of an ITR form to avail a business loan.
Before we start, let us know what exactly is an ITR form, an Income Tax Return form is a form that contains information related to a person’s taxes and income to be paid during the year. This is submitted to the Income Tax Department of India.
So Why do you need an ITR form for a Business Loan?
Shows that you are financially responsible:
Filing your income tax return within a government set date is a rule prescribed by the government. This is mandatory for people who are earning a particular amount of income. Filing the return reflects on your sense of completing a duty towards your nation and is an example of you being a good citizen.
ITR is one of the important documents:
A business loan requires several documents such as a balance sheet and profit & loss account. Along with these, it is also required to submit the filled ITR form of the last three years. These are part of the compliance and help in strengthening your loan case even further.
Helps the lender understand your business:
An ITR form lists your income from your business, interest earned from your savings and fixed deposits or an income from any secondary source. It also includes any interest that you might have paid for a loan. Overall, it gives a glimpse of your financial conditions and insight into your business. This will help your lender understand your financial position and assess your eligibility for an amount for your business financing.
To calculate your income:
An ITR form helps your lender to calculate your net income. This is done considering all the elements of an ITR form. On the basis of this income, the lender may decide how much loan amount is to be given or whether a loan amount is to be given or not when you apply for a business loan.
Though we have listed the significance of the ITR for a business loan, there are many out there who don’t have an ITR form. So does that mean that you cannot get a business loan without an ITR? Fortunately, that is not true. You can get a business loan without an ITR.
At Piramal Finance, you can get a business loan without the hassles of an ITR. The relevant documents required for a business loan at Piramal Finance are:
- Application form with a recent photograph
- Proof of identity such as passport, driving license, Aadhar Card, or Voter’s identity card.
- Proof of Income in the form of 6 months primary bank statement
- Proof of residence like passport, Aadhar card, driving license, Voter’s Identity Card, or utility bills like telephone bill /electricity bill etc.
You can opt for online business loans and make the most out of their digitally driven process for quick sanctions and smooth processes. Their comprehensive assessment allows them to give you the maximum possible loan amount. It offers loans up to 10 lakh rupees without any collaterals.
An ITR is an important document when it comes to fulfilling your tax obligations and assessing your financial position. However, it is not mandatory for you to have a filled ITR form to avail a business loan. Piramal Finance offers you hassle-free business loans thanks to their prompt services and simpler programs at your doorstep without requiring an ITR form.