It has been clarified that where fringe benefit tax (with respect to allotment or transfer of specified security or sweat equity shares) has been paid by the employer and subsequently recovered from the employee, the recovery of fringe benefit tax shall be deemed to be the tax paid by such employee in relation to value of fringe benefits provided to him. The deeming provision shall apply only to the extent to which the amount of recovery relates to the value of the fringe benefits provided to such employee.
Further it is provided that, not withstanding anything contained in the Income Tax Act, in the above situation, the employee shall not be entitled for any refund out of such deemed payment of tax; and shall also not be entitled to claim any credit of such deemed payment of tax against tax liability on other income or against any other tax liability.
The provision takes effect from 1st April, 2008 and applies in relation to the assessment year 2008-2009 (previous year 2007- 2008) and subsequent years.
Further it is provided that, not withstanding anything contained in the Income Tax Act, in the above situation, the employee shall not be entitled for any refund out of such deemed payment of tax; and shall also not be entitled to claim any credit of such deemed payment of tax against tax liability on other income or against any other tax liability.
The provision takes effect from 1st April, 2008 and applies in relation to the assessment year 2008-2009 (previous year 2007- 2008) and subsequent years.
0 comments:
Post a Comment