Hello, I am a freelance web developer, and give service to my clients from home through online. I don't have any office. My annual income is about 10 Lakh. I used to file ITR 4 with 44AD declaration. I need nearly 20 lakh home loan from bank. What kind of business or tax document do I need to arrange or maintain ? In my situation P/L account and balance sheet is require for getting loan, because I don't own any company and don't have any current account in bank ? Thank you :)
Banks generally provide home loans easily to people with audited financial or salaried employee who have fixed income.
In your case since you are filing 44AD and not having GST so getting Home loan would be difficult but looking at your loan amount and income I think you can get it even on this amount. Your IT return would be more than enough.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Do I need any trade license to get home loan ?
Hi
You would following documents :-
Hi
Hello,
Bank would need documents to justify the existence of your business and relevant business income. Income Tax Returns for the past three years with proper computation and Balance Sheet & P&L Account would be asked for along with proof of business address. Registration certificate under Shop & Establishments Act might also be required by the bank.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Registration under the Shop & Establishments Act would work as a trade license.
Yes banks do require profit and loss and balance sheet. You need to maintain that. Besides, you will also require income tax return acknowledgement.
Dear Sir,
Hope you are doing well !!
You need to submit tax returns along with your audited accounts.
No, yo don't need any trade license to get home loan.
Shops & Establishment Certificate is sufficient.
- As you are engaged in professional freelancing and acting as a sole proprietor. It is advisable to do the following necessary activities.
1) Open a current account for freelancing profession.
2) Fix trade name for the profession
3) Raise Invoices to the clients
4) Engage a CA for preparation of financial statements
5) Obtain MSME registration
No
Hi
You will have to get financial statements prepared for the last 3 years and submit to the bank with the ITR copies.
Balance Sheet and P&L can be prepared in your case. We may assist with the same.
Further, as you are a web developer, it seems you are claiming 44AD benefit incorrectly. You are a professional and eligible for presumptive taxation under section 44ADA.
Trade license is not required for availing a home loan.