14. Section 122A of the principal enactment is hereby repealed and the following section substituted therefor:-
| 122A.
| | (1) Every bank or financial institution shall, subject to the provisions of this Chapter deduct at the time the interest is paid or credited. on any sum of money deposited with it-
| | | (a) by any person or partnership in his or its own name or in the name of any other person or without the name of any person or partnership, other than in any Security or Treasury Bond issued under the Registered Stocks 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) -
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| (b) by any person or partnership in his or its own name or without the name of any person or partnership in any Security or Treasury Bond issued under the Registered Stocks 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), and any discount is allowed and any interest is paid or is payable over the tenor of the period of such Security Bond or Bill. |
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| | (2) Notwithstanding the provisions in paragraph (a) of" subsection (1), in ease of any savings certificate, certificate of deposit, or similar instruments or Government Rupee Loans or any deposit not in the name of any individual or jointly with any other individual to any charitable institution as certified by the Commissioner-General, income tax shall be deducted on the total amount of the discount allowed and interest paid irrespective of such amount of discount or interest. | | |
| | (3) For the purposes of a deduction of income tax under this section -
| | | (a) "a sum of money deposited" means any interest bearing deposit, any form of savings certificate or certificate of deposit or any Security or Treasury Bond issued under the Registered Stocks and Securities Ordinance (Chapter 420). Treasury Bill issued under the Local Treasury Bills Ordinance (Chapior4l7). or the Central Bank Security issued under the Monetary Law Act (Chapter 422); |
| (b) "'interest" in relation to a deposit of a sum of money includes interest, discount, any guaranteed income or fee assured, or any other payment accruing to the benefit of the person or partnership in whose name or on whose behalf the sum of money is deposited or to any other person on his or its behalf but does not include any interest exempt under section 10 or any interest credited or paid to any Ministry of a Minister of the Cabinet, or Department of the Government of Sri Lanka, or any Local Government Institution, or any Institution under a Provincial Council, or any foreign Government or any person exempt on such interest income under paragraph (a) of section 8 of this Act ; |
| (c) in the case of a discount allowed, interest which is equal to the amount of discount shall be deemed to have been paid at the lime of such discount is allowed and in case of a bill or bond or security with interest payments over the tenor of such Bond or Bill, or security the interest shall be the yield to maturity which amounts shall be deemed to have been paid at the time of the issue of such. Bond or Bill or security. |
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Sri Lanka Consolidated Acts