19. Amendment of section 31 of the principal enactment

Official English translation. The Sinhala text prevails.

Section 31 of the principal enactment is hereby amended as follows :–

(1)

in subsection (2) of that section –

(a)

in paragraph (h) of that subsection by the substitution for the words “projection on a screen in a cinema.”; of the words “projection on a screen in a cinema ;”;

(b)

by the addition, immediately after paragraph (h) of that subsection, of the following paragraphs :–

“(i)

any expenditure incurred, otherwise than out of a loan referred to in paragraph (j)

Inland Revenue (Amendment)

on or after April 1 , 2002, by an individual in either the construction or the purchase of a house being in either case the first house constructed or purchased by such individual on or after April 1, 2001 ;

(j)

any expenditure incurred, on or after April 1, 2002, by an individual on the repayment of the capital of any approved housing loan either for the construction or the purchase of a house being in either case the first house constructed or purchased by such individual on or after

April 1, 2001.

For the purpose of this paragraph

“approved Housing loan” means any housing loan obtained from the

Government, or any banking institution within the meaning of the Monetary Law

Act, or any Provincial Fund, any local authority or any other institution approved by the Minister in charge of the subject of Housing.”;

(2)

in paragraph (a) of subsection (4) of that section –

(a)

in sub-paragraph (v) of that paragraph by the substitution for the words “twenty five thousand rupees”, of the words “twenty-five thousand rupees ;”;

(b)

by the insertion immediately after sub-paragraph (v) of that subsection of the following sub-paragraph :–

“(vi)

in respect of all qualifying payments referred to in paragraphs (i) and (j) of subsection (2) made by him in that year of assessment, shall not exceed one-third of the assessable income or one hundred thousand rupees which ever is less.”;

Inland Revenue (Amendment)

(3)

by the addition immediately after subsection (6) of that section of the following subsection :–

“(6A)

The excess of the allowance of any qualifying payment referred to in paragraph (i) of subsection (2) which cannot be deducted from the assessable income in the year of assessment in which such expenditure is incurred may be apportioned over a period of not more than nine years immediately succeeding the year of assessment in which such expenditure was incurred and such apportioned amount shall be deemed to be a qualifying payment made in each such year of assessment.”.

Read on from s 20