Inland Revenue (Amendment) Act 2002 · As enacted
32. Insertion of new Chapter XVIA in the principal enactment
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
The following new Chapter is hereby inserted immediately after Chapter XVI of the principal enactment and shall have effect as Chapter XVIA of that enactment :—
Inland Revenue (Amendment)
“CHAPTER XVIA
DEDUCTION OF INCOME TAX FROM RENT, LEASE RENT OR OTHER
PAYMENT PAID BY ANY PERSON OR PARTNERSHIP FOR THE USE OR
OCCUPATION OF ANY LAND OR BUILDING OTHER THAN FOR
RESIDENTIAL PURPOSES
131A.
Persons paying rent, lease rent etc. to deduct income tax
Every person or partnership paying any rent, lease rent or other payment for the use or occupation otherwise than as a residence, of any specified land or building on or after April 1, 2002 shall deduct at the time of the payment of such rent, lease rent or other payment, income tax at the rate of ten per centum of such rent, lease rent or other payment.
131B.
Application of the provisions of Chapter XV to this Chapter
The provisions of Chapter XV relating to the deduction of income tax from interest paid by banks and financial institutions, credit for income tax so deducted, duties of banks and financial institutions, default in the deduction of income tax, issue of assessments on banks and financial institutions, appeals and penalty for default shall, mutatis mutandis apply to the deduction of income tax from such rent, lease rent or other payments as is mentioned in section 131A, credit for income tax so deducted, duties of persons liable to pay such rent, lease rent, or other payment, default in the deduction of income tax, issue of assessments on such persons, appeals and penalty for default under this Chapter, as if there were substituted in
Chapter XV for the words “banks and financial institutions” of the words “persons liable to pay such rent, lease rent or other payment” and for the word “interest” of the words “rent, lease rent or other payment” wherever they appear in that
Chapter, subject however, to the modification that credit for income tax deducted under the
Inland Revenue (Amendment)
provisions of this Chapter by any person from any rent, lease rent or any other payment paid to any co-owners of such property shall be apportioned among such co-owners in proportion to their rights of ownership in such property.
For the purposes of this Chapter—
“specified land or building” means a land or building in respect of which the amount of rent, lease rent or other payment payable for any calendar month or part thereof is not less than fifty thousand rupees or the aggregate rent, lease rent or other payment payable for any year is not less than five hundred thousand rupees.”.