The revival and development of our economy are directly linked to the credit growth of banks and NBFCs. With the fresh opportunities emerging for lending to the retail sector, MSME and corporate sectors, the Banks and NBFCs need to gear up for fresh credit dispensation. In this respect, software packages like ITR Analysis Software are highly useful tools to facilitate quick, efficient, and transparent decision-making for lending. Income tax return software is an application that aids in the computation of income taxes, TDS, ITR preparation, and e-filing. Given the few key activities and single-window computations, using the ITR analyzer is extremely simple and user-friendly. The software captures the basic information relating to each income tax paying entity as available in the public domain on the income tax portal. This information is then processed and analyzed to judge the financial information which helps in the assessment of each proposal to sanction a loan. It enables seamless income and employment verification to accelerate approval/disapprovals.
The tool provides various particulars of the income taxpayer that can be fetched from the Income Tax Return filed by the assessee. The information can be directly taken from the government portal which requires a username and password from the user. Alternatively, the user can upload XMLs or PDFs that can generate the detailed ITR report. Depending on the legal status of the assessee, (an individual, partnership firm, company, etc) ITR 1 to 7 is available on the portal. The tax filing status is captured through the software and the details are analyzed. It enables seamless income and employment verification to accelerate approval/disapprovals.
The ITR analysis software provides the general information of the customer along with information about the key personnel, change of partners /members, holding companies, and shareholding percentage. Besides this, the software also provides the information of directors, partners, and auditors, along with information about the employer (in the case of an individual assessee), income from salary, house property, capital gains, and income from other sources. The balance sheet and profit and loss statements, in the case of business enterprises, are also available. The ITR software tool also has strong analysis capabilities to assess collected data.
The data captured by the ITR Analysis software and the analysis undertaken provide us the fundamental information about the various financial ratios which are an important aspect of the credit appraisal process of the banks/NBFCs and Fintechs. These ratios include liquidity, solvency, profitability, operational efficiency, and repayment capacity ratios. They constitute essential aspects of credit appraisal for lending in case of business loans to MSMEs as well as corporates -- the ITR Analysis software is apparently of great utility for lenders.
Similarly in the case of retail loans, like auto loans and housing loans, the repayment capacity is gauged through the salary and other financial documents of an individual borrower from the ITR analyzer. Banks can therefore use the ITR Analysis software for retail loans too.
There are no disadvantages of this software except that the same may be required to be supplemented with other tools of analysis like GSTR analyzer, Bank statements analyzer and e KYC, etc for a comprehensive analysis.
The ITR Analysis software inter alia involves gathering essential data from the income tax portal of the government and undertaking the requisite analysis of the said data. It is a useful tool for assessing the financial strength of the proposed borrower and helps the lender in the sanction process of loans for all categories of borrowers viz., retail, MSME, and corporates. The software examines the borrower's income streams, tax returns, financial transactions, and much more. It provides credit appraisers with a 360-degree perspective of the applicants' financial knowledge, allowing for better loan decisions.
ScoreMe Solutions Pvt Ltd provides a comprehensive end-to-end product for assistance in credit operations of all categories of banks/NBFCs and Fintechs. ScoreMe provides the ITR analyzer tools, with features discussed above along with other supplementing tools like bank statements analyzer, GSTR analyzer and financial statements analyzer. The tool captures the information from borrowers’ income tax returns in real-time. It displays actual data that can be reconciled with the borrower's claimed data and provides a unique solution enabling paperless credit and analytics for financial institutions. With over 100 plus digital champions, ScoreMe provides scalable and digital solutions and is a highly useful software for all lenders. With its minimum key operations and auto import of data from computation, ScoreMe provides user-friendly software for the best customer experience.