Tax & Accounting
Tax planning for loan eligibility — borrow tomorrow, plan today.
Every ITR, GST return and banking entry you file this year decides the loan you can raise next year. We align your tax position with your 24-month borrowing plan — so the file is fundable when growth needs it.
What underwriters actually read
ITR (last 2–3 yrs)
Declared income, profit trend, capital account — the lender's first signal of repayment capacity.
GST returns
Turnover consistency, sector classification, ITC pattern — cross-checked against ITR for any mismatch.
Banking
Average balance, banking vintage, bounced-cheque ratio, cash-deposit ratio, repayment of existing EMIs.
CIBIL & enquiries
Score, mix of secured/unsecured credit, recent enquiries (multiple hard pulls in 30 days hurt).
FOIR & DSCR
Fixed Obligations to Income Ratio and Debt Service Coverage Ratio — the two formulas that decide your EMI capacity.
Sector & vintage
Some sectors (textiles, trading, certain services) face tighter underwriting; vintage under 2 years limits options.
Planning levers we use
- Salary vs dividend vs buyback mix for company owners
- Depreciation timing — accelerated vs straight-line for the year you plan to borrow
- Presumptive (44AD/44ADA) vs regular scheme — tax cost vs declared income
- Capital-gain spreading across financial years
- Loan EMI prepayment to improve FOIR before applying
- Cash deposits reduced in favour of digital receipts for cleaner banking
- Vendor and customer banking aligned with your business bank
- Existing obligations restructured or consolidated before fresh application
The 24-month rule
FAQ
Common questions
I declared low income to save tax — now I can't get a business loan. What do I do?+
This is the most common reason MSMEs get rejected. Underwriters look at ITR + GST + banking together. If you've optimised tax to the point where declared income can't service the proposed EMI, no lender will approve — even with strong turnover. We restructure your tax position 12–18 months before you actually need the loan, so the declared income supports the borrowing capacity.
How much income do I need to show for a ₹50 L business loan?+
Most banks cap EMI at 50–60% of net cash accruals (FOIR). For a 5-year ₹50 L unsecured business loan at ~14%, EMI is roughly ₹1.17 L — which means a sustainable post-tax profit of ₹2.3–2.5 L per month, plus existing obligations headroom. We model the exact figure for your proposed lender and tenure.
Does presumptive taxation (44AD/44ADA) hurt loan eligibility?+
It can — because presumptive taxation lets you declare income at 6%/8% of turnover, which may be lower than what the bank needs to underwrite. The trade-off is real: pay less tax today vs declare higher income to borrow tomorrow. We help you decide based on your 24-month capital plan.
Next step
Get your file reviewed before you apply again.
Share basic details — a senior advisor will read your profile, diagnose what's blocking approval, and tell you exactly what to fix first.
- No CIBIL pull until strategy is agreed
- No blind portal submissions
- Review by a senior advisor — not a call-centre agent
Explore further
Continue your funding readiness journey
Funding Readiness Assessment
Score your business against the 6 pillars lenders actually evaluate.
Why Loan Applications Get Rejected
The 8 silent killers behind approval failures — and how to fix each.
Tax Planning for Loan Eligibility
How ITR & GST decisions today decide your borrowing capacity tomorrow.
Business Loan vs LAP
Which structure actually fits your cash flow, risk and tenure.
Credit Profile Improvement
From low CIBIL or rejection to a fundable file — the structured way.