30. Insertion of new Chapter XIVA in the principal enactment

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

The following new Chapter is hereby inserted immediately after Chapter XIV of the principal enactment and shall have effect as Chapter XIVA of that enactment :-

“CHAPTER XIVA

PROVISIONS RELATING TO THE PAYMENT OF INCOME TAX BY A

GOVERNMENT INSTITUTION

121A.

Payment of income tax by a Government institution for its employees

(1)

Notwithstanding anything contained in section 2 and in Chapter XIII and

XIV of this Act, the income tax attributable to one half of official emoluments of any employee of a Government Institution, for any year of assessment commencing on or after April 1, 2005, shall be paid by such Institution, if such part of the official emoluments of such employee for that year of assessment, exceeds an amount equal to the allowance referred to in paragraph (a) of subsection (1) of section 30 :

Provided that no part of such income tax shall be refunded to such employee or set off against any tax payable by such employee.

(2)

Notwithistanding anything contained in section 4 of this Act, the income tax in respect of one half of the official emoluments of any employee of a Government Institution shall be deemed not to form part of the profits from employment of such employee.

(3)

For the purposes of subsection (1) “the income tax attributable to one half of the official emolments of any employee of a Government

Institution” means the income tax computed, at the rates specified in Part 1D of the First Schedule to this Act, on the one half of emoluments of such employee, after deducting therefrom a sum equal to the allowance referred to in paragraph (a) of subsection (1) of section 30.

(4)

For the purposes of this Chapter –

“Government Institution” means any institution or other body which empolys individuals holding any paid office under the Republic, a public corporation, Provincial Council, a local authority, University, Institution, board or Commission referred to in paragraph (bb) of subsection (1) of section 9 of this Act ; and

“official emoluments” means profits from employment as specified in paragraph (a) of subsection (1) of section 4

received for services rendered, excluding pension.”.

Read on from s 31