Sri Lanka Consolidated Acts

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Compulsory Savings Act (No. 6 of 1971) - Sect 5

Determination of total income for the purposes of this Act

5.
(A) For the purposes of this Act, the income of any person for the relevant period shall be determined in the same manner and on the same principles as the assessable income of that person would be determined for the purposes of income tax subject to the following modifications: -
(1) The income of that person shall not include-
(a) any capital gain of that person arising during the relevant period;
(b) compensation for loss of any office or employment; and
(c) any sum paid to that person during the relevant period from any regulated provident fund or any provident fund approved by the Commissioner for the purposes of the principal Act or by way of retiring gratuity, commutation of pension or refund under section 46 (1) or section 49 of the Widows' and Orphans' Pension Fund Ordinance or under any regulation which relates to any Widows' and Orphans' Pension Fund or Scheme established for the Local Government Service and which corresponds to the aforesaid section 46 (1) or section 49.
(2) The income of that person shall include-
(a) any profits of that person during the relevant period, being the profits and income of any undertaking which are exempt from income tax under paragraph (i) or paragraph (ii) or paragraph (iii) or paragraph (iv) or paragraph (v) or paragraph (vi) or paragraph (vii) of sub-section (2) of section 6 of the principal Act;
(b) the amount of any dividend paid to that person during the relevant period by any undertaking referred to in sub-paragraph (a) out of profits and income referred to in that sub-paragraph;
(c) the amount of any profits and income which are exempt from income tax under section 7 of the principal Act; and
(d) any income of that person during the relevant period being income which under section 90 or section 90a or section 90b or section 90c or section 90d or section 90e of the National Housing Act is exempt from income tax.
(3) In the case of an employee, a deduction of six hundred rupees in lieu of payments made by him as interest or as premia on insurance policies or as contributions to a regulated provident fund or to a provident fund approved by the Commissioner for the purposes of the principal Act shall be allowed or if the amount of such payments exceeds six hundred rupees a deduction of the amount actually paid by him as such interest, premia or contributions shall be allowed in determining his income for the relevant period.
(4) In the case of an individual who is not an employee, sums payable for the relevant period by way of insurance premia shall be allowed as a deduction in determining his income for the relevant period.
(5) The amount of any approved investment within the meaning of section 16c of the principal Act made by an individual during the relevant period shall be allowed as a deduction in determining his income for the relevant period.
(6) In determining the income of that person for the purposes of this Act, no deduction shall be allowed for any loss deductible under section 15 (1) (b) of the principal Act.
(B) In the case of a trust to which there are beneficiaries, the share of the income to which such beneficiaries are entitled may be deducted from the income of such trust and may be considered for the purposes of this Act as the income of the beneficiaries and accordingly each such beneficiary shall be liable to pay the contribution to the Fund in respect of his share of such income.
(C) Where the estate of a deceased person is administered by an executor, the share of the income to which the heirs are entitled may be deducted from the income of such estate and may be considered for the purposes of this Act as the income of the heirs and accordingly each such heir shall be liable to pay the contribution to the Fund in respect of his share of such income. In this sub-section " heir " includes any person who has an interest in the estate.

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