Deemed payment of tax by employee where employer recovers fringe benefit tax; refund and credit not permitted.

Where an employer who paid fringe benefit tax on allotment or transfer of specified securities or sweat equity shares subsequently recovers that tax from an employee, the recovered amount is deemed to be tax paid by the employee only to the extent it relates to the value of the fringe benefit attributable to that employee; once so deemed, the employee cannot claim a refund of that payment or credit it against other tax liabilities under the Act.

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