Sri Lanka Consolidated Acts

[Index] [Table] [Database Search] [Name Search] [Previous] [Next] [Help]

Inland Revenue (Amendment) Act (No. 37 of 2003) - Sect 38

Insertion of new section 52A in the principal enactment

38. The following new section is hereby inserted immediately after section 52 of the principal enactment and shall have effect as section 52A of that enactment :"
52A.
(1) Where any- individual referred to in paragraph (a) or(b) subsection (1) of section 9 is in receipt of profits from employment, exempt under such section and any other profits and income chargeable with income tax, for any year of assessment commencing on or after April 1, 2003, the income tax payable by such person on income of chargeable with tax shall be calculated notwithstanding any other provisions of this Act as follows -
(2) The statutory income of such individual for any year of assessment commencing on or after April 1, 2003 shall include the income chargeable with tax and the emoluments and other benefits referred to in paragraph (a) or (b) of subsection (1) of section 9. other than benefits referred to in section 4(1)(c) which shall not be subject to the provisions of this section.
(3) The assessable income and taxable income of such individual for each year of assessment shall be ascertained as provided for in section 29 and section 30 respectively.
(4) The income tax on such taxable income for each year of assessment shall be calculated applying the tax rates specified in the First Schedule to this Act.
(5) A special employment tax credit in addition to other tax credits available for each year of assessment under this Act shall be granted before granting of other tax credits, calculated as given below.
(6)
(a) For the purpose of calculating the special employment tax credit, the employment income for the relevant year which is exempt from tax under paragraph (a) or (b) of subsection (1) of section 9. shall be considered as the total statutory income of such person for such year and any deductions allowable under section 29 and any allowance due under section 30 for such year to such person shall be deducted from such total statutory income and the residue of such total statutory income, if any shall be considered as the taxable income and the tax shall be calculated applying the rates specified in the First Schedule to this Act. to such taxable income ;
(b) The amount of tax calculated in accordance with the provisions of paragraph (a) shall be the special employment tax credit.
(7) A special employment tax credit calculated in accordance with subsection (6) shall be deducted before taking credit for any other tax credits as may be available for set off against the tax payable on other income.
(8) Any excess amount of such credit as may arise from the special employment tax credit shall not be refundable.".

[Index] [Table] [Database Search] [Name Search] [Previous] [Next] [Help]