43. The following new section is hereby inserted immediately after section 124A of the principal enactment and shall have effect as section 124B of that enactment :"
| 124B.
| | (1) Any person other than an individual from whose interest income tax is deductible by a bank , financial institution, or a company which issues any corporate debt security in accordance with the provisions of paragraph (a) of subsection (1) of section 122A or subsection (1) of section 122B. as the case may be, where such interest income will form part of the assessable income of such person for any year of assessment, may, if the amount of income tax payable by such person for such year of assessment is less than the income tax deductible during that year of assessment under section 122A and 122B, make an application to the Commissioner-General in such form and containing such particulars as may be specified by the Commissioner-General, requesting that a direction be issued to the bank or financial institution or any company which issues corporate debt security subject to the deduction of income tax, to make necessary adjustments in the deduction of income tax during that year of assessment : | | |
| | (2) Notwithstanding the provisions of subsection (i) of section 124 A or of this section. any individual from whose interest income tax is deductible by a bank or financial institution in accordance with the provisions of paragraph (a) of subsection (1) of section 122A. during any period commencing on or after January 1, 2004, and where "
| | | (a) such interest income is the sole income or the major source of income of such individual, where more than ninety per centum of his income consists of such interest income for that year of assessment ; |
| (b) the amount of the interest income receivable on all deposits maintained by such individual either singly or jointly in all banks and financial institutions, does not exceed rupees twenty five thousand in a month or rupees three hundred thousand in any twelve months period; and |
| (c) the total income of such person for that year of assessment including any income exempt from income tax does not exceed rupees three hundred thousand for that year of assessment. |
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| | (3)
| | | (a) On receipt of an application containing all particulars as mentioned in subsection (2) and being satisfied with the identity of such applicant , the Chief Executive Officer or any other designated officer not below the rank of a manager, shall make necessary endorsements on that application and issue the relevant instructions to refrain from deduction of tax from the interest paid or credited to such individual, unless such officer or the institution receives a direction to the contrary from the relevant authority or any other officer authorized by him. |
| (b) The Chief Executive Officer or any other designated officer not below the rank of a manager of such bank or financial institution, shall submit the originals of all such applications received and accepted with the necessary endorsement , to the relevant authority or any other officer authorized by the relevant authority, retaining a copy of such application with such bank or financial institution. |
| (c) Any individual who has furnished incorrect information to a bank or financial institution and has obtained the relief of non payment of income tax under this section, shall be liable to pay such tax due on interest income as provided in section 122A, with hundred per centum penalty thereon, and such tax and penalty shall be a tax in default under this Act, and shall be recovered by the Commissioner-General as provided for in Chapter XXII of this Act. |
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Sri Lanka Consolidated Acts