Itr query
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 July 2012
im veer chugh my father is motor mechanic(repairs trucks) a self employed
his gross total annual income is rs 200000 approx. i had applied for education loan bank is demanding computation of income,p&l statement,balance sheet etc
we had only filled itr for last two years
what shall i do to get those documents
his gross total annual income is rs 200000 approx. i had applied for education loan bank is demanding computation of income,p&l statement,balance sheet etc
we had only filled itr for last two years
what shall i do to get those documents
25 July 2012
There are some bank who provide education loan without any collateral security or on the guarantee of other.
you need to explore banks.
you need to explore banks.
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 July 2012
i had applied in state bank of india which is in my college they are not demanding any collateral as my loan is below 4 lacs just tell me from where i can get those documents in that condition .and the are giving loan with 11% intrest while others are charging 13%-15% intrest.
02 August 2024
To provide the required documents for your education loan application, you’ll need to prepare a few key financial statements and records to support the loan application, especially if the bank is requesting a computation of income, Profit & Loss (P&L) statement, and balance sheet. Here’s how you can go about it:
### **1. Preparation of Required Documents**
#### **a. Computation of Income**
1. **Details of Income**:
- Include all sources of income your father has, such as repair services for trucks.
2. **Computation**:
- Start with the gross income (Rs. 200,000).
- Deduct allowable expenses related to the business (e.g., tools, materials, utilities).
- The result is the net income.
#### **b. Profit & Loss (P&L) Statement**
1. **Income**:
- List all sources of income, primarily from the motor repair business.
2. **Expenses**:
- Include direct expenses (e.g., parts, repairs, labor).
- Include indirect expenses (e.g., utilities, rent, depreciation).
3. **Net Profit**:
- Subtract total expenses from total income to arrive at net profit.
#### **c. Balance Sheet**
1. **Assets**:
- Include cash, bank balances, and any fixed assets (e.g., tools, vehicles).
2. **Liabilities**:
- Include any outstanding loans or payables.
3. **Net Worth**:
- Calculate by subtracting total liabilities from total assets.
### **2. Where to Get These Documents**
- **From Previous Returns**:
- The P&L statements and balance sheets for the past two years may be available in the ITR returns filed. If you filed the returns through a tax consultant or a software, you may request copies from them.
- **Accounting Software/Records**:
- If your father has used accounting software or kept manual records, you can prepare the P&L and balance sheet based on those records.
- **Professional Help**:
- If you don’t have the required documentation or need assistance, you can hire an accountant or a tax professional to prepare these documents. They can create a computation of income, P&L statement, and balance sheet based on the records you provide.
### **3. Submission to the Bank**
1. **Compile Documents**:
- Gather the completed P&L statement, balance sheet, and computation of income.
- Ensure they are accurate and consistent with the figures reported in the ITR.
2. **Submit Documents**:
- Provide these documents to the bank along with the ITR copies.
- The bank may also require a declaration or a letter from a chartered accountant verifying the authenticity of the documents.
### **4. Regarding Interest Rates**
- **Interest Rates**:
- While you mentioned that State Bank of India (SBI) is offering a lower interest rate (11%), it’s essential to ensure that the terms and conditions of the loan are favorable and that no additional fees or conditions are imposed.
- **Comparison**:
- Compare the loan terms, including the interest rates and repayment schedules, with other banks and financial institutions to ensure you’re getting the best deal.
### **Summary**
- Prepare a computation of income, P&L statement, and balance sheet based on the business’s financial records.
- Use previous ITR documents and records from accounting software or manual records.
- If needed, consult with an accountant to prepare the documents accurately.
- Submit these documents along with your ITR copies to the bank for your education loan application.
By preparing these documents carefully, you should be able to meet the bank’s requirements and facilitate the loan approval process.
### **1. Preparation of Required Documents**
#### **a. Computation of Income**
1. **Details of Income**:
- Include all sources of income your father has, such as repair services for trucks.
2. **Computation**:
- Start with the gross income (Rs. 200,000).
- Deduct allowable expenses related to the business (e.g., tools, materials, utilities).
- The result is the net income.
#### **b. Profit & Loss (P&L) Statement**
1. **Income**:
- List all sources of income, primarily from the motor repair business.
2. **Expenses**:
- Include direct expenses (e.g., parts, repairs, labor).
- Include indirect expenses (e.g., utilities, rent, depreciation).
3. **Net Profit**:
- Subtract total expenses from total income to arrive at net profit.
#### **c. Balance Sheet**
1. **Assets**:
- Include cash, bank balances, and any fixed assets (e.g., tools, vehicles).
2. **Liabilities**:
- Include any outstanding loans or payables.
3. **Net Worth**:
- Calculate by subtracting total liabilities from total assets.
### **2. Where to Get These Documents**
- **From Previous Returns**:
- The P&L statements and balance sheets for the past two years may be available in the ITR returns filed. If you filed the returns through a tax consultant or a software, you may request copies from them.
- **Accounting Software/Records**:
- If your father has used accounting software or kept manual records, you can prepare the P&L and balance sheet based on those records.
- **Professional Help**:
- If you don’t have the required documentation or need assistance, you can hire an accountant or a tax professional to prepare these documents. They can create a computation of income, P&L statement, and balance sheet based on the records you provide.
### **3. Submission to the Bank**
1. **Compile Documents**:
- Gather the completed P&L statement, balance sheet, and computation of income.
- Ensure they are accurate and consistent with the figures reported in the ITR.
2. **Submit Documents**:
- Provide these documents to the bank along with the ITR copies.
- The bank may also require a declaration or a letter from a chartered accountant verifying the authenticity of the documents.
### **4. Regarding Interest Rates**
- **Interest Rates**:
- While you mentioned that State Bank of India (SBI) is offering a lower interest rate (11%), it’s essential to ensure that the terms and conditions of the loan are favorable and that no additional fees or conditions are imposed.
- **Comparison**:
- Compare the loan terms, including the interest rates and repayment schedules, with other banks and financial institutions to ensure you’re getting the best deal.
### **Summary**
- Prepare a computation of income, P&L statement, and balance sheet based on the business’s financial records.
- Use previous ITR documents and records from accounting software or manual records.
- If needed, consult with an accountant to prepare the documents accurately.
- Submit these documents along with your ITR copies to the bank for your education loan application.
By preparing these documents carefully, you should be able to meet the bank’s requirements and facilitate the loan approval process.
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