| (1) For the purpose of ascertaining the profits or income of any person from any source, no deduction shall be allowed in respect of"
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| (a) domestic or private expenses, including the cost of traveling between the residence of such person and his place of business or employment ; | | |
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| (b) expenses incurred in connection with his employment other than the expenses referred to in paragraph (g) and paragraph (i) of subsection (1) of section 23 ; | | |
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| (c) any expenditure incurred in traveling outside Sri Lanka in connection with any trade, business, not being a business referred to in paragraph (d), profession or vocation carried on or exercised in Sri Lanka by such person, other than the expenses incurred in traveling outside Sri Lanka solely in connection with the"
| | | (i) promotion of the export trade of any article or goods : or |
| (ii) provision of any services for payment in foreign currency : or |
| (iii) training referred to in paragraph (1) of subsection (1) of section 23. where such expenditure is deductible in accordance with such paragraph : |
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| (d) any expenditure incurred in traveling outside Sri Lanka in connection with the business of any undertaking of operating any hotel for tourists, carried on by such person, other than"
| | | (i) the expenditure incurred in traveling outside Sri Lanka solely in carrying out a programme approved by the Ceylon Tourist Board for the promotion of tourism ; |
| (ii) the expenditure incurred in traveling outside Sri Lanka for the purposes of any training referred to in paragraph (1) of subsection (1 ) of section 23 where such expenditure is deductible in accordance with the provision of such paragraph : |
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| (e) entertainment expense incurred by such person or his employee or on his behalf in connection with any trade, business, profession or vocation carried on or exercised by him : | | |
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| (f) entertainment allowances paid by such person to his executive officer; | | |
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| (g) any disbursements or expenses of such person, not being money expended for the purpose of producing such profits or income ; | | |
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| (h) any expenditure of a capital nature or any loss of capital incurred by such person ; | | |
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| (i) the cost of any improvements effected by such person ; | | |
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| (j) any sum recoverable under a contract of insurance or indemnity, if the amount received under such contract is not treated as income under section 89 of the Inland Revenue Act, No. 28 of 1979 or under section 96 of this Act : | | |
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| (k) rent of. or expenses in connection with, any premises or part of a premises not occupied or used for the purposes of producing such profits and income ; | | |
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| (l) any amount paid or payable by such person by way of "
| | | (i) income tax. or super tax or surtax or any other tax of a similar character in any country with which an agreement made by the Government of Sri Lanka for the avoidance of double taxation is in force (other than the excess of any such income tax. or super tax or surtax or any other tax of a similar character over such maximum amount of the credit in respect of Sri Lanka income tax as is allowed by paragraph (c) of subsection (1) of section 92) ; or |
| (ii) Sri Lanka income tax : or |
| (iii) any prescribed tax or levy : and |
| (iv) input tax under the Goods and Services Tax Act. No. 34 of 1996. for the period for which the profits and income are being ascertained in respect of any taxable activity, within the meaning of that Act. carried on by such person. if such person is entitled under that Act to claim credit for such input tax. |
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| (m) any annuity, ground rent, or royalty paid by such person ; | | |
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| (n) any payment by such person to any pension. provident. savings, widows' and orphans' pension. or other society or fund, except such payments as are allowed under paragraph (c) of subsection (1) of section 23 ; | | |
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| (o) one-half of the excess of any expenditure incurred by such person in providing any place of residence to any employee of such person or to the spouse, child or parent of such employee over the rental value of such place of residence which is included in the profits from employment of such employee within the meaning of section 4 ; | | |
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| (p) such part of the rental paid by him under any agreement entered into by him in any year of assessment in respect of"
| | | (i) any plant, machinery, fixtures or equipment other than plant, machinery or fixtures or equipment referred to in paragraph (b). as is. in excess of an amount equal to one-half of the total rental payable under such agreement : and |
| (ii) any motor vehicle, lorry, bus. tractor, trailer and office furniture, as is in excess of an amount equal to one-fourth of the total rental payable under such agreement; |
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| (q) any sum transferred to any reserve or provision (other than any annual payment referred to in paragraph (q) of subsection (1 ) of section 23. for the payment of any sum referred to in subsection (2) of section 32. : | | |
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| (r) such part of any sum paid or payable by such person, not being any venture capital company, any unit trust or any mutual fund, as consideration for the management of any trade, business, profession or vocation carried on or exercised by him. as exceeds"
| | | (i) one million rupees or one per centum of the turnover of such trade, business, profession invocation during the period in which profits and income are being ascertained whichever is lower;or |
| (ii) such amount as may be determined by the Commissioner-General having regard to all the circumstances of the case, as being reasonable and commercially justifiable as such consideration. |
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Sri Lanka Consolidated Acts