|
26. Insertion of new section 115WKB. |
|
|
—After section 115WKA of the Income-tax Act, the following section shall be inserted, namely:—
"115WKB. Deemed payment of tax by employee.—(1) Where an employer has paid any fringe benefit tax with respect to allotment or transfer of specified security or sweat equity shares, referred to in clause (d) of sub-section (1) of section 115WB, and has recovered such tax subsequently from an employee, it shall be deemed that the fringe benefit tax so recovered is the tax paid by such employee in relation to the value of the fringe benefit provided to him only to the extent to which the amount thereof relates to the value of the fringe benefit provided to such employee, as determined under clause (ba) of sub-section (1) of section 115WC.
(2) Notwithstanding anything contained in any other provisions of this Act, where the fringe benefit tax recovered from the employee is deemed to be the tax paid by such employee under sub-section (1), such employee shall, under this Act, not be entitled to claim—
(i) any refund out of such payment of tax; or
(ii) any credit of such payment of tax against tax liability on other income or against any other tax liability.".
Clause 26 seeks to insert a new section 115WKB in the Income-tax Act, relating to deemed payment of tax by the employee.
Sub-section (1) of the proposed section seeks to provide that where an employer has paid any fringe benefit tax with respect to allotment or transfer of specified security or sweat equity shares, referred to in clause (d) of sub-section (1) of section 115WB, and has recovered such tax subsequently from the employee, it shall be deemed that the fringe benefit tax so recovered is the tax paid by such employee in relation to the value of the fringe benefit provided to him only to the extent to which the amount thereof relates to the value of the fringe benefits provided to such employee, as determined under clause (ba) of sub-section (1) of section 115WC.
Sub-section (2) of the new section seeks to provide that notwithstanding anything contained in any other provision of this Act, where the fringe benefit tax recovered from the employee is deemed to be the tax paid by such employee under sub-section (1), such employee shall not be entitled, under this Act, to claim any refund out of such payment of tax or any credit of such payment of tax against tax liability on other income or against any other tax liability.
This amendment will take effect from 1st April, 2008 and will accordingly apply in relation to the assessment year 2008-09 and subsequent assessment years.
|
|
|
Case Look ups