9. Amendment of section 29 of the principal enactment

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

Section 29 of the principal enactment as amended by

Act, No 10 of 2002 is hereby further amended as follows :–

(1)

in subsection (1A) of that section –

(a)

substitution for the word and figure “section 122A”, wherever that word and figure appears in that section, of the words and figures

“section 122A and section 122B” ;

(b)

in the proviso to that subsection by the substitution for the words “statutory income of such person.”, of the words “statutory income of such person : ” ;

(c)

by the insertion immediately after the proviso to that subsection of the following :–

“Provided further that the interest received or accruing to any primary dealer being a company or otherwise from which tax has been deducted under section 122A on any primary market transaction on any Security or

Treasury Bond issued under the Registered

Stocks and Securities Ordinance (Chapter 420), or Treasury Bill issued under the Local

Treasury Bills Ordinance (Chapter 417), or

Central Bank Security issued under the

Monetary Law Act (Chapter 422), shall not be considered as receipts from any trade or business under section 3 for the purpose of computing the statutory income of such company.” ;

(2)

by the insertion immediately after subsection (1A)

of that section of the following new subsection :—

“(1B) The assessable income of any primary dealer, on or after April 1, 2002, shall not include any interest income received or accruing where –

(a)

tax, on the total amount of such interest has been deducted under section 122A or section 122B, as the case may be ; and

(b)

such interest income has been accrued or arisen to such primary dealer in respect of a primary market transaction on any Security or

Treasury Bonds issued under the Registered stock and Security Ordinance (Chapter 420), or Treasury Bill issued under the Local

Treasury Bills Ordinance (Chapter 417), or

Central Bank Security issued under the

Monetary Law Act (Chapter 422), referred to in section 122A or any debt security issued by a company under section 122B, as the case may be.; and ;

(3)

in the proviso to subsection (2) of that section –

(a)

in sub-paragraph (c) of paragraph (iii) of that subsection by the substitution for the words “moneys worth.”, of the words

“money’s worth ;”;

(b)

by the insertion immediately after paragraph (iii) of that proviso of the following paragraph :–

“(iv) no deduction shall be allowed in respect of any sum paid if the amount payable has already been allowed in any year of assessment commencing prior to April 1,

2002.”.

Read on from s 10