4. Where any company, to which the provisions of paragraph (a) of section 3 (1) apply, takes steps to reduce its share capital and such reduction is effected on or before March 31, 1961, then,-
| (a) if before such reduction the share capital of that company exceeded, and the issued share capital of that company did not exceed one million rupees, the tax to be charged from that company for the financial year ending on March 31, 1962, shall be computed on the amount of its reduced share capital or one million rupees, whichever is more, and |
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| (b) if before such reduction the share capital and the issued share capital of that company each exceeded one million rupees, the tax to be charged from that Company for that financial year shall be computed on the amount of its reduced share capital or on the amount of its issued share capital as on the relevant date, whichever is more. |
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Sri Lanka Consolidated Acts