35. Rates of income tax on persons other than companies

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

Subject as hereinafter provided, income tax shall be charged for each year of assessment on the taxable income for that year of assessment of any person–

(a)

if he is an individual other than a receiver, trustee, executor or liquidator acting in such capacity in respect of any year of assessment, at the appropriate rates specified in Part I of the First Schedule to this

Act;

(b)

if he is an individual who is not a citizen of Sri

Lanka and is deemed by subsection (7) of section 79, to be non-resident, at the rate specified in Part II of the First Schedule to this Act; or

(c)

if such person is a person other than a company or an individual to whom paragraph (a) applies, in respect of any year of assessment at the appropriate rates specified in the Third Schedule to this Act:

Provided that the income tax payable for any year of assessment by an individual who is deemed to be non-resident under subsection (7) of section 79, shall not be more than the amount by which his assessable income for that year of assessment exceeds the allowance referred to in paragraph (a) of subsection (1) of section 33.

(2)

Where in consequence of the inclusion in the statutory income of an individual for any year of assessment of–

(a)

a sum received in commutation of a pension;

(b)

a sum received as a retiring gratuity other than such part of such sum as exceeds—

(i)

one million eight hundred thousand rupees;

(ii)

a sum equivalent to the average monthly salary or wage paid to such individual during the period of three years immediately preceding his retirement from any employment under the employer who pays such gratuity, multiplied by the number of completed years of service, whichever is greater;

(c)

any sum received as compensation for loss of office or employment;

(d)

a sum paid to him, at the time of his retirement from any employment, or at any subsequent time, from a provident fund approved by the Commissioner-Genera,l other than such part of that sum as represents his contributions to that provident fund;

(e)

any sum paid from a regulated provident fund to an employee (other than such part of that sum as represents the contributions made by the employer to that fund prior to April 1, 1968, and the interest which accrued on such contributions made by the employer, if in respect of such contributions made by the employer and the interest which accrued on such contributions made by the employer, tax at the rate of fifteen per centum has been paid by the employer); or

(f)

any sum paid to him at the time of his retirement from any employment or at any subsequent time, from the Employees’ Trust Fund, established by the

Employees’ Trust Fund Act, No.46 of 1980, his taxable income for that year of assessment exceeds that which would be his taxable income if no such aforementioned sum were included in his statutory income, the excess, notwithstanding anything contained in any other provision of this Act, shall be chargeable with tax at the appropriate rates specified in Part IV of the First Schedule to this Act, if such aforementioned sum has been paid by the employer of such individual, in accordance with a scheme which, in the opinion of the Commissioner-General, is uniformly applicable to all individuals employed by such employer. If any such aforementioned sum has been paid to such individual in accordance with a scheme which, in the opinion of the

Commissioner-General, is not uniformly applicable to all individuals employed by such employer, his taxable income (inclusive of such excess) shall be chargeable with tax at the appropriate rates specified in Part I of the

First Schedule to this Act:

Provided however, that where the taxable income of an individual for any year of assessment includes any sum referred to in paragraph (c), which has been paid to such individual in accordance with a scheme which in the opinion of the Commissioner-General, is not uniformly applicable to all individuals employed by the employer of that individual, such sum is deemed to be income from employment within paragraph (c) of subsection (1) of section 4, and shall be chargeable with tax at the appropriate rate specified in the Part I of the

First Schedule to this Act.

(3)

Where any charitable institution provides in any year of assessment institutionalised care for the sick or the needy and where the Commissioner-General is satisfied that the cost of provision of such care is borne by such charitable institution, the Commissioner-General may, subject to such condition as he may specify, reduce or remit the tax payable by such charitable institution in respect of its profits and income for such year of assessment, if it appears to the

Commissioner-General that such reduction or remission is just and equitable in all the circumstances of the case.

(4)

Where a fund or society has been set up or formed for the welfare of the members of the Sri Lanka Army, Sri Lanka

Navy, Sri Lanka Air Force or the Sri Lanka Police Force and their respective families, the Commissioner-General may, subject to such conditions as he may specify, reduce or remit the tax payable by such fund or society, as the case may be, if it appears to the Commissioner-General that such reduction or remission is just and equitable in all the circumstances of the case.

Chapter IX