11. Amendment of section 29 of the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 29 of the principal enactment as last amended by Act, No. 19 of 2003 is herby further amended as follows

:–

(1)

in subsection (2) of that section, by the insertion immediately after paragraph (d) thereof of the following paragraph :–

“(e) For any year of assessment commencing on or after April 1, 2003 the amount of a loss (other than any brought forward loss incurred by him from any period prior to April 1, 2003 which is deductible under this section) in any trade, business, profession or vocation shall be deducted as follows :—

(i)

any loss from a trade or business to be deducted only from the statutory income from trade and business ;

(ii)

any loss from a profession to be deducted only from the statutory income from profession ;

(iii)

any loss from a vocation to be deducted only from the statutory income from vocation.

Any balance loss not deductible may be carried forward and deducted from the next year of assessment and so on from the statutory income as mentioned above subject to the limitations on carry forward of losses under this section :

Provided however, the preceding provisions shall not be applicable to any loss–

(i)

if the loss represents any excess payments of annuity, ground rent, royalty or interest not deductible under section 23 ;

(ii)

if the loss represents any allowance for depreciation or cost of renewal under section 23 ;

(iii)

if the total statutory income from which such loss is deductible for that year of assessment does not exceed one million rupees.”;

(2)

by the insertion immediately after subsection (1B)

of that section of the following new subsection :—

“(1C)

The assessable income of any person shall not include—

(a)

any reward received by such person as an informer under any scheme for the payment of such rewards ; or

(b)

a share of fine received by such person under any scheme for the distribution of such share of fine, from any Government Institution, on or after

April 1, 2003, from which income tax has been deducted in accordance with Chapter XVIB.”;

(3)

in subsection (2) of that section by the substitution for the words “within such period of six years or eleven years as the case may be ;”, of the following :—

“within such period of six years, or eleven years, as the case may be :

Provided however, notwithstanding the provisions of paragraphs (b) or (c) the Minister may determine the maximum period for which a loss may be carried forward in relation to any specific activity considering the importance of such activity for the economic development of Sri Lanka .”; and

(4)

in paragraph (a) of subsection (3) of that section, by the substitution for the words and figures “or section 20 of this Act”, of the words and figures “or section 20 or section 21A or section 21B or section 21C or section 21D or section 21E or section 21F or section 21G or section 21H of this Act.”.

Read on from s 12