Is Form 16 or ITR mandatory for home loan?

Lenders who are only interested in verifying the applicant’s repayment capacity, accept Form No 16 as proof of one’s income and do not insist on your income tax return. Form No 16 has details of the salary paid and tax deducted from it. From Form No 16, the lender comes to know about your employer.

Which ITR to file if you have home loan?

ITR-1 Sahaj
You have to file the Form ITR-1 Sahaj which applies in case you are a salaried professional repaying a home loan for a self-occupied property. You should be aware of the home loan tax benefits as well. These include deductions up to Rs. 1,50,000 on principal repayment and also on stamp duty and registration charges.

Should Form 16 and ITR match?

Sometimes the receipts under the heads ‘income from house property’ or ‘income from other sources’ mentioned in Forms 16, Form 16A and Form 26AS may be shown under a different head in ITR. So in this case, income tax notice will not be served for any likely difference between the two.

Can I get a home loan without ITR?

The lenders consider ITR as a crucial document to assess your level of income. Most lenders require ITR (last 3 years) to process your home loan application. If you are unable to provide ITR returns, your application may not be accepted. Without an ITR, you will be unable to get your financial documents ready.

Can I get loan without ITR?

Yes, applicants can avail personal loans without ITR but only through certain lenders such as Money View. At Money View, the emphasis is placed on minimal documentation and a hassle-free application process.

Is Form 16 required for personal loan?

Loans: Individuals may need to show the Income Tax Returns they filed when they apply for a home loan, personal loan or a vehicle loan. Form 16 gives a breakup of your salary and your tax liabilities, and it comes handy while assessing your loan application.

What if Form 16 is not available?

Even if you don’t have Form 16, there are several documents such as salary slips, Form 26As etc. you can use as a reference to file your income tax return (ITR). Follow this guide to know how you can easily your ITR without having your Form 16 from your employer.

Can Form 16 be wrong?

The primary step is to bring the error or mismatch to the notice of your employer or deductor as the case may be. Your deductor can file a TDS correction statement to the Income Tax Department for rectification of the error.

Can I get home loan with 2 years ITR?

Most lenders require ITR (last 3 years) to process your home loan application. If you are unable to provide ITR returns, your application may not be accepted.

Do I need both form 16 and ITR when applying for home loan?

Unless you have sufficient income, you wouldn’t ask for a home loan and if you have sufficient income, you need to file the IT returns. Net, if you are requesting a home loan, I’m sure you would have both Form 16 and ITR. Many use Legacy Tax and Resolution to resolve tax problems. End IRS and/or state nightmares now.

Why do banks ask for ITR when applying for a loan?

The bank will ask for your ITRs just to make sure that you have a steady and sufficient source of income to repay the EMIs on the loan you take from it. Form 16 (which is a certificate of TDS deducted on salary) will be provided by your employer.

What is form 16 and how to file it?

Each employer issues Form 16 to his employees who are liable to TDS on salary. Therefore, if an employee switches his job from one to company to another, then he will receive form 16 from each of his employer, if his income is liable to tax. However, Form 16 is not a substitute to Income Tax Return.

Can a salaried person file ITR for a home loan?

A salaried person may also file ITR against the annual earning, to adjust/claim rebate the excess tax deducted or for any such requirement. While applying for any loan, the lenders wishes to see your annual earnings and thus they demand either Form 16 or ITR for the corresponding year.