14.
| (1) There shall be exempt from income tax"
| | (a) any capital gain arising on"
| | | (i) the sale by any individual, or the acquisition by the State, of any house constructed by such individual and used solely for residential purposes, such sale being the first sale of that house; |
| (ii) the sale by any individual, or the acquisition by the State, of any house owned by such individual and used solely for residential purposes, if such individual has not sold or the State has not acquired from that individual on or after April 1, 1978, any house other than a house referred to in sub-paragraph (i) ; |
| (iii) the sale to a customer of any property held by the vendor primarily for sale to customers in the ordinary course of his trade or business ; |
| (iv) the sale of any property by any person, being property used by him in producing income in any trade, business, profession, vocation or employment carried on or exercised by him and in respect of which an allowance for depreciation has been granted under section 23. if the full proceeds of sale are used within one year of the sale, for the replacement of such property to be used by such person for producing income in any trade, business. profession. vocation or employment carried on or exercised by him : |
| (v) the passing of any property subject to a trust from the trustee to any beneficiary under the trust ; |
| (vi) the passing of any properly belonging to the estate of a deceased person from his executor to any testate or intestate heir of the deceased ; |
| (vii) the passing of any property to any person, on the death of the owner of that property ; |
| (viii) the passing of any property occurring on the gift of that properly by its owner to any other person ; |
| (ix) the passing of any properly, being shares in any company incorporated in Sri Lanka with which an agreement has been entered into by the Board of Investment of Sri Lanka under section 17 of the Board of Investment of Sri Lanka Law, No. 4 of 1978. from the owner of that property to any other person by way of sale, gift or otherwise : |
| (x) change of ownership of any motor vehicle in respect of which a deduction for depreciation has not been allowed under subsection (1) of section 23 of this Act or under section 23 of the Inland Revenue Act, No. 28 of 1979 or under section 10 of the Inland Revenue Act, No. 4 of 1963 or of any household effect or other article of personal use (excluding jewellery) : |
| (xi) change of ownership of a right to exploit a property occurring by a transfer of that right ; |
| (xii) the surrender of a life insurance policy : and the surrender, transfer or extinction of a life interest; |
| (xiii) the change of ownership of any share in a quoted public company ; |
| (xiv) the transfer, upon me conversion of a business carried on by an individual, cither solely or in partnership with others, into a quoted public company, of any part of the capital assets of such business to such company, but only if. such part of those assets as were acquired for that business prior to March 31, 1977 are transferred to that company at a price not exceeding the market value of those assets on March 31,1977 : |
| (xv) the transfer upon the conversion of a business carried on by an individual, either solely or in partnership with others, into a limited liability company not being a company referred to in paragraph (xiv) of the capital assets of such business to such company if but only if not less than eighty per centum of the shares of such company are held in any case where such business."
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| (xvi) the change of ownership of any properly. occurring not less than twenty-five years after the date of acquisition of such property by the person to whom such gain arises : |
| (xvii) the sale, by any venture capital company referred to in section 22DDD of the Inland Revenue Act, No. 28 of 1979 of any share or stock, held by it in any other company ; |
| (xviii) the sale, by any unit trust or any mutual fund referred to in section 22DDDD, of the Inland Revenue Act. No. 28 of 1979 of any share or stock held by such unit trust or mutual fund in any other company ; |
| (xix) the sale, by any person of any unit held by such person in any unit trust or any mutual fund after one year from the date of acquisition by such person, of such unit; |
| (xx)the sale, by any person of any treasury bill held by such person, in the secondary market: |
| (xxi)the relinquishment or transfer of any right to a share received under a rights issue or a bonus issue of a quoted public company ; |
| (xxii)the sale by any person of any treasury bond. registered stock or any other security issued under the Registered Stock and Securities Ordinance (Chapter 420) and held by such person, in the secondary market: |
| (xxiii)the sale, by any person, of any bond, debenture or other debt instrument issued by any company and held by such person, being a bond, debenture or other debt instrument which, at the time of such sale is quoted in any official list published by any Stock Exchange licensed by the Securities and Exchange Commission of Sri Lanka ; |
| (xxiv)change of ownership of any"
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| | (b) the aggregate amount of the capital gain of any person for any year of assessment which arises in respect of movable property other than stocks, shares, debentures or debenture stocks, if such aggregate amount does not exceed two thousand rupees ; | | |
| | (c) the first five thousand rupees of the capital gain of any person for any year of assessment, if such person has a total assessable income for the three years of assessment immediately preceding that year of assessment which is less than the total of the allowances which under subsection (1) of section 30 of this Act. or subjection (1). of section 30 of the Inland Revenue Act. No. 28 of 1979. are required to be deducted from his assessable income in arriving at his taxable income for those three years of assessment. | | |
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| (2) For the purposes of sub-paragraphs (xxii) and (xxiii) of paragraph (a) of subsection (1). "capital gain" means the excess, if any, of the capital gain computed in accordance with the provisions of subsection (2) and (4) of section 7. over such part of the interest which hut for such sale, would have accrued to such person in respect of such bill. bond. stock or other security had such bill. bond, stock or other security been held by such person until such bill, bond, stock or other security matured, as is attributable to the period during which such bill. bond, stock or other security was held by such person. |
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Sri Lanka Consolidated Acts