Sri Lanka Consolidated Acts Sri Lanka Consolidated ActsA notional tax credit on secondary market transactions
| 137. Where any person is engaged in any secondary market transaction involving any security or treasury bond issued under the Registered Stock and Securities Ordinance (Chapter 420), or Treasury Bill issued under the Local Treasury Bills Ordinance (Chapter 417), or Central Bank Security issued under the Monetary Law Act (Chapter 422) referred to in section 133, on which the income tax has been deducted during any year of assessment at the rate of ten per centum at the time of issue of such Security, Bond or Bill, such person is entitled to a notional tax credit at ten per centum of the grossed up amount of interest income from such secondary market transaction, to an amount of one ninth of the same, if such interest income forms part of the statutory income of such person being a company or the assessable income of such person being a person other than a company, for that year of assessment. For the purposes of this section "interest income from secondary market transaction" means interest income accrued or received on a outright or reverse purchase transaction on such Security, Bond or Bill, from a date on or after the date of primary issue of such Security, Bond or Bill, less interest expenses on repurchase transaction with Securities, Treasury Bonds or Treasury Bills from which such interest income was earned, which has been certified by an approved accountant referred to in section 107, of this Act. |