34. Amendment of section 117A of the principal enactment

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

Section 117A of the principal enactment is hereby amended as follows :-

(1)

by the substitution in subsection (1) of that section, for all the words and figures from “shall deduct tax at the rate of –” to the end of that subsection, of the following words and figures:-

“shall deduct tax at the rate of –

(a)

ten per centum -

(i)

where the aggregate of such payments or value of such benefits does not exceed twenty five thousand rupees per month; or

(ii)

where the aggregate of such payments or value of such benefits does not exceed fifty thousand rupees per month, if such employee is an individual employed in the public sector; or

(b)

sixteen per centum–

(i)

where the aggregate of such payments or value of such benefits exceeds twenty five thousand rupees per month; or

(ii)

where the aggregate of such payments or value of such benefits exceeds fifty thousand rupees per month, if such employee is an individual employed in the public sector;

on such payments or the value of such benefits in terms of the provisions of this Chapter. No direction shall be issued or entertained under section 118 in relation to such payments or value of such benefits.”; and

(2)

by the addition immediately after subsection (3) of that section, of the following new subsection:-

“(4)

Where an individual is employed under more than one employer or has more than one employment and receiving any benefit from the private use of a motor vehicle or any allowance paid in lieu of the provision of such vehicle or value of any transport facility from more than one employer or from more than one employment, the excess of aggregate of such benefit or allowance or such value over fifty thousand rupees shall form part of such employee’s employment income liable to tax.”.

Read on from s 35