CA Nagamani (Chartered Accountant (Employee) ) 21 February 2021
Generally we deduct TDS on payment of inetrest to NBFC.In case of delayed payment of EMI they will levy Overdue interest, and prepayment charges in case of preclosure and cheque bounce charges in case of cheque bounce. So whether we need to deduct TDS on overdue interest, prepayment charges and cheque bounce charges.
Fazil Ahmad 21 February 2021
No need, mostly such interest and charges gets reversed in the end at the time of loan closure
CA Nagamani (Chartered Accountant (Employee) ) 21 February 2021
It is the payable amount at the time of closure but these should be recognised as an expenses only because it is additional to the principal amount. Like interest overdue interest, prepayment and cheque bounce also need to be recognised an an expense.
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