Login to Internet banking
A brand-new experience - smarter, faster, and secured
Introducing the First-in-industry IDFC FIRST Bank's Super Account
Request a Callback
You gain a dedicated partner committed to helping you reach your full potential and achieve new heights
Know More- Account with Auto-Sweep FD
- Account for all Domestic businesses
- Account for Importers & Exporters
- Account for Start-ups
- Accounts for Trusts/Associations/Societies/Clubs
- Account for Merchants
- Account for Agri Traders
- Account for Self-employed professionals
- Special Purpose Accounts e.g. SNRR, RERA, EEFC
BRAVO (Auto Sweep)
Convert the idle funds in your current account into a fixed deposit with the BRAVO feature.
Know More
Streamline your export process with digital convenience with IDFC FIRST Bank's Export Solutions
Know More
Make more than one online payment in just a few clicks with IDFC FIRST Bank Bulk Payments
Know More
A Card that Powers your Savings & Lifestyle
IDFC FIRST Bank HPCL Credit Card
Most Searched
Enjoy Zero Charges on All Commonly Used Savings Account Services
Open Account Now
Download our app
Get instant help for all your queries in one place
Explore Personal
- Accounts
Tools & Calculators
Privilege Program
- Privilege Program
Unlock features, exclusively available
only on the IDFC FIRST Bank app
FinFIRST Blogs
Personal Loan
Debt-to-income ratio and personal loans: Some important aspects you must be aware of
Key Takeaways
Lenders use your debt to income ratio to decide how much personal loan you can afford and whether you qualify under wise lending norms
- Reducing existing debts and increasing income are practical steps you can take to improve your debt to income ratio quickly
- Understand what components count as debt and income so you know exactly how your ratio is calculated
- With a better debt to income ratio you can get more favourable loan terms from IDFC FIRST Bank reducing stress on repayment
Whether you want to fund a home renovation project or take a luxury vacation, personal loans have become an easy and convenient way to meet monetary requirements. As a personal loan is usually unsecured in nature, lenders use various parameters to determine loan eligibility. One such crucial parameter is the 'debt-to-income ratio (DTI)'.
The Debt-to-income ratio helps banks and NBFCs understand your creditworthiness. When the DTI is in the ideal range, it indicates good financial health, reducing the risk for lenders.
Let’s check out the different aspects of the debt-to-income ratio and its applications.
What is debt-to-income ratio?
Debt-to-income ratio (DTI) is a financial metric used by banks and NBFCs. The purpose of DTI is to determine an applicant’s ability to manage debt repayments. To calculate DTI, you must divide the total Equated Monthly Instalments (EMIs) by the gross monthly income. The resulting percentage is your debt-to-income ratio.
For example, let's say your total monthly debt is Rs 50,000 and your gross monthly income is Rs 1,00,000.
DTI Ratio = (50,000 / 1,00,000) x 100 = 50%
Also read - Tips to avail of a personal loan despite a low credit score
Importance of debt-to-income-ratio in personal finance
Debt-to-income ratio is a crucial financial metric pertaining to the reasons mentioned below -
- Financial health - Debt-to-income ratio serves as an indicator of the applicant’s ability to manage EMIs.
- Eligibility - Debt-to-income ratio helps lenders determine personal loan eligibility. A higher debt-to-income ratio indicates greater debt burden and strain on finances. Whereas lower DTI lowers the risk of default.
- Financial planning - Debt-to-income ratio helps you make informed decisions related to your finances. You are in a better position to ensure timely EMI payments.
READ MORE
Belated, revised, and updated income tax returns
• A belated ITR is filed if the taxpayer fails to file the income tax return on or before the original due date.
• A revised ITR is filed if the original income tax return status is erroneous, i.e. inaccurate.
• An updated ITR can update any or all previous income tax returns filed. However, this can be filed only once for an assessment year.
Purpose
You can file a belated income tax return if you still need to complete the original ITR filing date. A revised return is filed when you have filed the original ITR on time, but it needs correction. A revised return can also revise a belated return. An updated return can be filed to update any omissions or mistakes in the original, overdue, or revised income tax returns. It can also be filed if none of these returns has been filed.
Timeline
Belated returns can be filed on or before 31st December of the assessment year. The last date for filing a revised return is also 31st December of the assessment year. There is no limit to how many times a belated return can be filed. An updated ITR can be filed after the end of the relevant assessment year but within 24 months of the end of the relevant assessment year.
Also read: https://www.idfcfirst.bank.in/finfirst-blogs/finance/is-tax-refund-amount-taxable
Why you should avoid taking these extensions
While filing a belated return, you cannot carry forward your losses (except loss from house property). A late fee under Section 234F and interest under Sections 234A, 234B, and 234C is levied on belated returns. While filing a revised ITR, you must provide the original return's receipt number and filing date. In an updated return, you cannot file a nil or loss return, or claim or increase the tax refund amount.
Given these drawbacks, you must – as far as possible – file your income tax return on time and correctly.
Also read: https://www.idfcfirst.bank.in/finfirst-blogs/finance/banking-details-needed-for-filing-taxes
Conclusion
To reduce your tax liability, you can make tax-saving investments through your IDFC FIRST Bank Savings Account. For attractive fixed deposits and direct investment through demat, open your IDFC FIRST Bank Savings Account today!
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.
Summarize with AI
