Moratorium interest capitalisation NBFC

What is the accounting entries for moratorium interest capitalisation

Is TDS applicable on Interest
Replies (7)
Quick Summary
This discussion clarifies the accounting treatment for interest capitalisation during a moratorium period for NBFCs. It confirms that TDS is applicable on this interest. The correct accounting entry involves debiting the interest account and crediting the lender's account, effectively adding the moratorium interest to the outstanding loan amount and extending the loan tenure.

Yes, It's due 1st -So TDS Applicable.

Post-normal -Interest Payable (Current Liability ) Entry.
Yes TDS is applicable on moratorium
Thank you Mr. Balamurali & Sourav

NBFC add moratorium interest amt in outstanding loan account and increase tenure

what is the accounting entry ?

Credit the interest portion, debit the principal amount.

Mr. Balamurali Ji,

not understand your accounting entry

below entry is right, please check

Interest account Dr.
Lender account Cr.

What about the principal portion.

Lender account means

Aditya Birla Loan A/c - Amount (Principal outstanding)

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