Individual Filing to get a Loan

This query is : Resolved

Harikrishnan V (Querist)
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13 August 2021 My client want to get a Personal Loan of Rs. 20 Lakhs ,Bank officials said that his income should be 10 lakhs to get a loan,he is a director and owner in a pvt company and that is his only income he gets,but his income comes around only 4 lakhs ,he wants to me show this as a 10 lakhs ,But tax liability comes around 1.2 lakhs now how i should i reduce the tax liability and which ITR form i need to file

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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13 August 2021 Tax to be paid on the actual income earned. It would be inappropriate (or not possible) to disclose higher income for the sake of loan and not pay income tax on the same.
As I understand, it would be better to get 10 lacs from the company as salary and disclose the same as it is and avail allowable deductions/exemptions under IT Act to reduce tax liability.

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Harikrishnan V

Harikrishnan V (Querist)
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13 August 2021 Thanks for the reply

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