Income Tax Return (ITR)

Income Tax Returns are the annual filings with the Income Tax Department declaring income from all sources and tax paid. For loan applications, lenders typically require ITR filings of the last 2-3 years as income proof, especially for self-employed applicants, business owners, and professionals.

ITR shows total income, deductions claimed, tax paid, and forms the basis for lenders to assess repayment capacity. Higher declared income results in higher loan eligibility. Common ITR forms: ITR-1 (Sahaj) for salaried with basic income, ITR-3 for business/professional income, ITR-4 (Sugam) for presumptive taxation.

Lenders also cross-reference ITR with bank statements and financial statements to verify income consistency. Under-declaration of income to save tax directly reduces loan eligibility.

ITR is the primary income document for self-employed loan applicants. Proper tax filing with accurate income declaration directly impacts loan eligibility and amount.