Deemed tax payment by employee precludes refund or credit when employer recovers fringe benefit tax from employee.

Where an employer pays fringe benefit tax on allotment or transfer of specified securities or sweat equity shares and later 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. Such deemed payment cannot be the subject of a refund or be credited against other tax liabilities.

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