ITR (Income Tax Returns) for the previous 2-3 years are required to apply for a home loan. Depending on the lender policy, the exact number of years may vary. The ITR assists the lender in determining the borrower financial stability, creditworthiness, and ability to repay. Lenders prefer ITRs with higher income and consistent tax payments. The ITR also includes information on income sources, deductions claimed, and tax refunds, all of which can affect home loan eligibility and amount. As a result, it is advisable to keep and file ITR on a regular and accurate basis in order to improve one chances of getting a home loan.
