11. Section 31 of the principal enactment is hereby amended as follows: "
| (1) in subsection (1) of that section"
| | (a) by the substitution, for the words and figures " subsection (5B) and subsection (5c) ", of the words and figures " subsection (5B) subsection (5c) and subsection (5D) " ; | | |
| | (b) by the substitution, for the words, "made by him in that year of assesment. of an allowance equal to the amount of such qualifying payment.", of the words and figures " made by him or deemed to have been made by him in that year of assessment, of an allowance equal to the amount of such qualifying payment: | | |
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| (2) in subsection (2) of that section"
| | (i) by the addition, immediately after subparagraph (vi) of paragraph (b) of that subsection, of the following sub-paragraph :"-
| | | " (vii) the Sevana Fund created and administered by the National Housing Development Authority established by the National Housing Development Authority Act, No. 17 of 1979 ;"; |
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| | (ii) by the substitution, in paragraph (d) of that subsection, for the words, " in an approved undertaking," ; of the words "in approved undertaking, other than an approved undertaking referred to in paragraph (q) ; " ; | | |
| | (iii) by the addition, immediately after sub-paragraph (ix) of paragraph (k) of that subsection of the following sub-paragraph : "
| | | " (x) the Institute of Policy Studies of Sri Lanka, established by the Institute of Policy Studies of Sri Lanka Act, No. 53 of 1988 ; " ; and |
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| | (iv) by the insertion, immediately after paragraph (p) of that subsection, of that following paragraph :"
| | | "(q) any sum invested by any person in the purchase of ordinary shares, other than existing shares, in any approved undertaking being a company"
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| (3) in subsection (5c) of that section, by the substitution for the words and figures " commencing on or after April 1, 1988 ", of the words and figures " commencing on or after April 1, 1988, but prior to April 1, 1990 "; |
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| (4) by the insertion, immediately after subsection (5c) of that section, of the following subsection : "
| | " (5D) The deduction from the assessable income of any person, other thin a company, for any year of assessment commencing on or after April 1, 1990"
| | | (i) in respect of all qualifying payments other than those referred to in paragraphs (b), (c), (m), (n) and (q) of subsection (2), made by him or deemed to have been made by him, shall not exceed one-third of such assessable income or fifty thousand rupees, whichever is less; |
| (ii) in respect of all qualifying payments, referred to in paragraphs (c), (m) and (n) of subsection (2), made by him, or deemed to have been made by him, shall not exceed fifty thousand rupees ; |
| (iii) in respect of any qualifying payment referred to in paragraph (q) of subsection (2), made by, him or deemed to have been made by him, shall not exceed one-third of such assessable income; and |
| (iv) in respect of the aggregate of all qualifying payments referred to in paragraph (i) and (ii) of this subsection, shall not exceed fifty thousand rupees." ; |
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| (5) in subsection (6) of that section, by the substitution for the words " referred to in paragraphs (b), (c), (m), (n) of" , the words " referred to in paragraphs (b), (c), (m), (n) or (q) of"; |
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| (6) by the insertion, immediately after subsection (7A) of that section, of the following subsection : "
| | " (7B) Where an allowance has been deducted from the assessable income of any person under subsection (1) in respect of any qualifying payment made for the purchase of any share referred to in paragraph (q) of subsection (2) and where, within a period of five years after the date of such purchase there is a change in the ownership of such share otherwise than by the death of the individual who purchased such share then, in respect of the year of assessment in which such allowance was granted an additional assessment consisting of the difference between the income tax to which the person who has been granted the allowance would have been liable if such allowance had not been granted and the amount of tax charged for that year of assessment shall, notwithstanding anything in this Act, be made in respect of that person and the provisions of this Act relating to notice of assessment, appeal and other proceedings shall apply accordingly,"; and | | |
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| (7) in subsection (8) of that section, by the substitution, for the words " in paragraphs (d) and (m) of ", of the words "in paragraphs (d), (m) or (q) of". |
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Sri Lanka Consolidated Acts