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TDS on late payment of EMI u/s 194A


CA Nagamani (Chartered Accountant (Employee) )     21 February 2021

CA Nagamani
Chartered Accountant (Employee)  
 26 points

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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

Fazil Ahmad   21 February 2021

Fazil Ahmad

 1 likes  75 points

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No need, mostly such interest and charges gets reversed in the end at the time of loan closure
CA Nagamani

CA Nagamani (Chartered Accountant (Employee) )     21 February 2021

CA Nagamani
Chartered Accountant (Employee)  
 26 points

View Profile | My Other Post

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.

Sourav

Sourav (Student)     21 February 2021

Sourav
Student 
 505 likes  8292 points

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No need

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