Income Tax APIs - Overview
What is ITR?
- Income Tax Return (ITR) is a crucial document where taxpayers provide details about their earned income and corresponding tax obligations to the income tax department.
- The Indian tax department has introduced seven distinct ITR forms: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7.
Key Information Available with ITR:
- Income Sources:
- ITR reveals various income sources, such as salary, business profits, capital gains, and interest income.
- It provides a comprehensive view of an individual’s financial inflows.
- Taxable Income Calculation:
- ITR helps compute taxable income by considering exemptions, deductions, and allowances.
- It ensures accurate tax liability assessment.
- Tax Refunds:
- If excess tax has been deducted, ITR facilitates claiming refunds.
- It ensures taxpayers receive any overpaid tax back.
- Bank Account Information:
- ITR includes bank account details.
- It aids in verifying income and facilitates direct refunds.
- Business and Profession Details:
- For business owners, ITR-3 and ITR-4 capture business income, expenses, and losses.
- It assists in assessing business profitability.
Why is ITR important as a source of infromation?
Compliance and Legal Obligations:
- Filing ITR is mandatory for certain income levels and specific situations.
- It ensures adherence to tax laws and avoids penalties.
Why Use Signzy's APIs
Signzy's APIs stand out for their user-centric approach
OTP Based Login : Signzy's offers OTP-based solution for effortless login. This feature doesn't just simplify the user experience by reducing complexity; it also significantly enhances security by eliminating the need to store or share passwords, mitigating the risks associated with password-based authentication.
Clients get the dual benefits of improved user experience and heightened security, ultimately contributing to a more streamlined and trustworthy product offering for both end-users and businesses alike.
In addition to OTP Based Login, we support Password logins and offer the flexibility to reset password flows.
In-Depth Analytics : Signzy's has ITR Analytics which offer diverse reporting capabilities for both individuals and corporates, providing deep insights into actual performance metrics such as balance sheets, profit and loss statements, and ratio analysis. This wealth of data enables users to create actionable risk and dependency scoring, enhancing underwriting processes.
Get customers ITR Filings : Signzy's APIs give you a comprehensive view of your customers income sources sources. Users can access transaction-wise TDS history, including interest, dividends, and market transactions like stocks and mutual funds. The platform computes tax liability on total income, TDS, advance, and self-assessment tax, ensuring accurate underwriting. KYC verification provides essential entity details, nature of business, GST receipts, bank account, and shareholder information.
Get the output in multiple formats JSON and Excel.
Use Cases
- Loan Approval and Risk Assessment:
- Income Verification: Lenders can use ITR data to verify an applicant’s income stability, tax compliance, and repayment capacity.
- Job Stability Metrics: Consistent ITR filings indicate stable employment, influencing credit decisions.
- Fraud Detection: Cross-referencing ITR data helps identify discrepancies or fraudulent claims.
- Credit Card Assessment
- The credit card underwriting process can integrate income information from ITR to verify income, streamline KYC, and simplify the onboarding process. Combining ITR data with credit histories from credit bureaus can facilitates the opening of credit card accounts.
- Credit Scoring and Underwriting:
- Holistic Financial Picture: Combining ITR records provides a comprehensive view of an individual’s financial health.
- Risk Assessment: Lenders assess creditworthiness based on income, tax history, and stability.
- Insurance Services:
- Life Insurance: Insurers use ITR data to evaluate an individual’s financial stability and risk profile.
- Health Insurance: Employment history influences health insurance eligibility and pricing.
- KYC Compliance:
- Identity Verification: ITR data ensures reliable identity validation.
- Address Verification: Bank account details in ITR records assist in verifying an applicant’s address.
- Employee Benefits Management:
- Group Insurance Policies: Insurers can manage group insurance policies using ITR information.
- Pension Plans: ITR data aids in administering pension plans for retired employees.
- Fraud Prevention and AML (Anti-Money Laundering):
- AML Checks: Analyzing ITR data helps identify suspicious transactions or patterns.
- Ghost Employees: TDS deducted by various organisation can help detecting non-existent employees claiming benefits.
- Retirement Planning and Investment Products:
- Individuals can use ITR data to plan retirement savings and investments.
- Mutual Funds: Assessing risk appetite based on financial stability.