Should You Submit ITR to Avail a PNB Housing Loan?
Purchasing your dream home can be a huge investment. Arranging such a massive amount is not an easy task.
Thankfully, the PNB Housing home loan is designed to simplify your dream of becoming a house owner. You can avail yourself of a housing loan, construct or purchase your property, and pay small amounts for thirty (30) years to repay the loan.
PNB Housing provides some of the lowest rates in the industry, thereby helping you to fulfill your housing dream without burdening your wallet. When you apply for any housing loan, such asa PNB Housing loan, your lender asks you to submit a host of documents.
Besides basic documents like PAN card, Aadhar Card, and property papers, your lender may ask you to furnish your Income Tax Returns or ITR. The ITR proves that your income is above the minimum threshold set by the lender. It also shows that your income is stable and you are creditworthy.
Which ITR Forms You May Submit to Avail of a PNB Housing Loan?
ITR or three-year Income Tax Returns is considered a mandatory document borrowers must submit to a lender along with the home loan application. It is wise to check the lender’s customer reviews before submitting your documents.
For example, if you choose PNB Housing as your lender, you must check PNB Housing Finance reviews on various insurance platforms before submitting your loan application.
Since ITR is a mandatory document, not submitting the document might prompt your lender to reject the loan application. ITR is vital because it contains all information about the taxes a borrower has paid to the Government of India. It also contains details about the taxpayer’s net earnings and speaks volumes about a borrower’s creditworthiness.
Before approving a loan, housing finance companies like PNB Housing check the ITR to determine the borrower’s loan eligibility and interest rate.
Types of ITR
The following are the seven different types of ITR forms you can submit to avail of a PNB Housing loan:
All resident individuals earning less than INR 50 lakh in any financial year must submit the ITR 1.
The income thus generated must be from salary, an agricultural income of up to INR 5,000, family pension, house property (one), interest from savings or deposits, interest from Income Tax Refund, or enhanced compensation.
All resident individuals and Hindu Undivided Families with a net income of more than INR 50 lakh in any financial year must submit ITR 2. The income thus generated must be from salary, property, capital gains, company directorship, etc.
Like ITR 1, you can submit ITR 2 to avail of the PNB Housing loan.
All resident individuals and Hindu Undivided Families with a net income of more than INR 50 lakh in any financial year can fill out and submit ITR 3.
The income thus generated must be from salary, property, capital gains, company directorship, foreign income or asset, partnership firm, etc.
All resident individuals, Hindu Undivided Families, and firms (except for LLP) can file ITR 4 provided their income from a business, profession, salary, house property (one), pension, etc., does not exceed INR 50 lakh in any financial year.
All registered firms, LLPs (Limited Liability Partnerships), AOPs (Association of Persons), BOIs (Body of Individuals), insolvents’ estates, deceased’s estates, business trust, investment fund, co-operative society, and local authority may fill out and submit ITR 5.
ITR 6 is filled out by companies registered under the Companies Act 1956 or 2013. However, a company does not need to file ITR 6 if its income comes from a property occupied for charitable or religious purposes.
ITR 7 is usually filled out and submitted by companies/ trusts mentioned in Sections 139 (4D), 139(4C), 139(4B), or 139(4A). Like all other ITR forms, you can submit ITR 7 to avail of a PNB Housing loan.
Can You Apply For A Housing Loan Without ITR?
While ITR is considered mandatory for availing of a PNB Housing Loan, you may apply for a housing loan without ITR. However, your income must be exceptionally high, and the other factors must be in your favor.
Housing loan eligibility depends on various factors, including loan duration, borrower’s age, monthly income, credit history, credit mix, etc. You may check PNB Housing Finance reviews to understand the loan approval process without ITR.
3-years ITR can increase the chances of PNB Housing Loan approval. However, if you do not possess the ITR, talk to the lender to understand the formalities. Ensure to read PNB Housing Finance reviews before submitting the loan application.
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