18. Insertion of new section 40C in the principal enactment

The following new section is hereby inserted immediately after section 40B of the principal enactment and shall have effect as section 40C of that enactment :-

40C. (1) Where the taxable income of any individual, being a citizen of Sri Lanka, for any year of assessment commencing on or after

April 1, 2014, includes any profits from employment (hereinafter in this section referred to as “relevant profits”) in the exercise of his duties as a professional, and the rate of income tax payable on a part of such taxable income

(hereinafter in this section referred to as the

“Rates of income tax on the profits from employment of professionals.

“relevant part of the taxable income”) exceeds sixteen per centum, then in regard to the relevant part of the taxable income, the tax payable shall be computed as follows:-

where such relevant part of the taxable income exceeds the amount of the relevant profits:-

the tax payable on such portion of the relevant part of the taxable income as is equal to the amount of such relevant profits, shall be computed at the rate of sixteen per centum; and

the tax payable on the balance of the relevant part of the taxable income, shall be computed according to such of the rates above sixteen per centum, as are applicable thereto, under the First

where such relevant part of the taxable income does not exceed the amount of the relevant profits, the tax payable on the entirety of the relevant part of the taxable income, shall be computed at the rate of sixteen per centum.

For the purpose of this section