No interest income would accrue to an NBFC on ICD which has become an NPA

No interest income would accrue to an NBFC on ICD which has become an NPA in accordance with provisions of section 45Q of RBI Act and Prudential Norms issued by RBI in exercise of its statutory powers


Under the provisions of section 45Q it is mandatory on the part of the assessee-NBFC not to recognise the interest on the ICD, which has become an NPA, as income having regard to the recognized accounting principles - [2010] 8 TAXMANN.COM 145 (DELHI)