According to Rule 3(7)(i).
The vale of the benefit to the assessee resulting from the provision of the interest free or concessional loan for any purpose made avilable to the employee or any member of his household during the relevant P.Y. by the employer or any person on his behalf shall be determined as the sum equal to the interest computed at the rate charged per annum by SBI , as on 1st day of relevant P.Y.in respect of loan for the same purpose advanced by it on the maximum outstanding monthly balance as redused by the interest, if any, actually paid by him or any such member of his household.
My question is that "what is the meaning of MAXIMUM OUTSTANDING MONTHLY BALANCE."
1. Maximum outstanding balance during the the month.
2.Balance outstanding at the last date of month.
almost all authores favours the second option including study Material
but I found first option better.
Please reply what u think.
CAclubindia
