24. The following new sections are hereby inserted immediately after section 32, and shall have effect as sections 32A, 32B and 32C, respectively, of the principal enactment:
| 32A
| | (1) The provisions of this section shall apply to the interest payable on the compensation payable in respect of any immovable or movable property vested in the Government or in the Land Reform Commission or in a public corporation or in a local authority, such interest being the accumulated interest payable on such compensation for the period commencing on the date on which such compensation accrues due and ending on the date of payment of such compensation (in this section referred to as " the relevant interest"). | | |
| | (2) Notwithstanding anything to the contrary in any law
| | | (a) the relevant interest received by any person shall be deemed to be income arising to that person in the year of assessment in which he receives such interest and not in the year of assessment to which such interest relates and such interest shall be liable to income tax at the rate of ten per centum; |
| (b) the Government, the Land Reform Commission, public corporation or the local authority paying the relevant interest to any person shall deduct from such interest an amount equal to ten per centum of such interest and shall remit the amount so deducted to the Commissioner-General, with a statement in writing, showing the particulars of the gross amount of the relevant interest payable, the tax deducted, the net amount paid, the name and address of the person to whom it is paid and the amount so remitted shall be set off against the tax payable by such person under paragraph (a). |
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| 32B
| | (1) The provisions of this section shall apply to the accumulated interest (in this section referred to as " the relevant interest") paid on a sum of money deposited in a banking institution by
| | | (b) another person on behalf of any individual, under a scheme approved by the Commissioner-General which
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| | (2) Notwithstanding anything to the contrary in this Act
| | | (a) the relevant interest paid to any individual shall be deemed to be income arising to him in the year of assessment in which such interest is paid to him and not in the year of assessment to which such interest relates and such interest shall be liable to income tax at the rate of fifteen per centum or the maximum rate at which he is liable to pay income tax on his profits and income (exclusive of the relevant interest) for that year of assessment, whichever is the lower rate; |
| (b) the banking institution paying the relevant interest to such individual shall, notwithstanding anything in paragraph (a), deduct from such interest an amount equal to fifteen per centum of such interest and shall forthwith remit the sum so deducted to the Commissioner-General; |
| (c) where a banking institution deducts, income tax in accordance with paragraph (b) from the relevant interest paid to any individual, it shall issue to such individual, a statement in writing setting out the gross amount of the relevant interest payable, the rate and amount of tax deducted and the net amount actually paid ; |
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| | (3) Where a banking institution, which is required by subsection (2) to deduct any income tax from the relevant interest paid by it to any individual, fails to deduct such income tax, then, the director, general manager or other principal officer of such banking institution shall be personally liable for the tax which such institution was required to deduct under this section and such tax may be recovered from such director, manager, or principal officer, by all the means provided in this Act. | | |
| | (4) Where any money is deposited in a banking institution by an individual under a scheme approved by the Commissioner- General under subsection (1) and such individual withdraws the interest on such money, in contravention of the conditions imposed by the Commissioner-General in relation to such scheme, additional assessments may, notwithstanding anything in this Act, be made in respect of every year of assessment to which the interest so withdrawn relates. | | |
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| 32c. The gross interest (not being interest exempt under any other provision of this Act), payable on a loan granted to any person in Sri Lanka by any company, partnership or other body of persons outside Sri Lanka, being interest which arises, or is deemed, by section 80A, to arise to such company partnership) or other body of persons shall, notwithstanding anything in this. Act. be chargeable with income tax at the rate of fifteen per centum. |
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Sri Lanka Consolidated Acts