11.*
| (1) For the purpose of ascertaining the profits or income of any person from any source, no deduction shall be allowed in respect of- [* The amendments made in section 11 by subsection (1) of section 7 of Act No. 18 of 1965, other than the amendments made in the aforesaid section by sub-paragraphs (ii) and (iii) of paragraph (a), and sub-paragraphs (ii) and (iii) of paragraph (b), of subsection (1) of section 7 of Act No. 18 of 1965, shall be deemed to have come into force on March 30, 1963-[See Section 7 (2) of Act No. 18 of 1965.]
| | (a) domestic or private expenses, including the cost of travelling between residence and place of business or employment; | | |
| | (b) expenses incurred in connection with employment other than the expenses referred to in paragraphs (c), (d), (e) (f) and (g) of subsection (1) of section 10; | | |
| | (c) any travelling expenditure incurred for any year of assessment ending prior to April 1, 1965, in connection with any trade, business, profession or vocation carried on or exercised by such person other than- | | |
| | (i) if he is carrying on any trade or business, the expenditure, determined in accordance with the provisions of subsection (2) and not exceeding two thousand rupees a year, incurred by him in connection with his trade or business in travelling within Ceylon to any place outside the city, town or village within which he mainly carries on his trade or business, | | |
| | (ii) If he is exercising any profession or vocation, the expenditure, determined in accordance with the provisions of subsection (2), incurred by him in connection with his profession or vocation in travelling within Ceylon to any place outside the city, town or village within which his residence or office is situated, | | |
| | (iii) the amount actually expended by an employee of such person, who is not an executive officer, in travelling within Ceylon in connection with the trade, business, profession or vocation carried on or exercised by such person, | | |
| | (iv) the expenditure determined in accordance with the provisions of subsection (2) incurred by an executive officer who is in the employment of such person in travelling within Ceylon in connection with the trade, business, profession of vocation carried on or exercised by such person to any place outside the city, town or village within which such person mainly carries on his trade or business, or, if such person exercises any profession or vocation, within which the residence or office of such person is situated; | | |
| | (cc) any expenditure incurred for any year of assessment commencing on or after April 1, 1985, in travelling outside Ceylon in connection with any trade, business, profession or vocation carried on or exercised in Ceylon by such person; | | |
| | (d) entertainment expenses 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; | | |
| | (e) entertainment allowances paid by such person to his executive officer; | | |
| | (f) one quarter of such person's cost of advertisement in connection with any trade, business, profession or vocation carried on or exercised by him; | | |
| | (g) any disbursements or expenses not being money expended for the purpose of producing the income; | | |
| | (h) any expenditure of a capital nature or any loss of capital; | | |
| | (i) the cost of any improvements; | | |
| | (j) any sum recoverable under an insurance or contract of indemnity; | | |
| | (k) rent of, or expenses in connection with, any premises or part of premises not occupied or used for the purpose of producing the income; | | |
| | (l) any amounts paid or payable by way of 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 Ceylon 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 Ceylon income tax as is allowed by paragraph (d) of subsection (1) of section 70 or by sub-section (4) of section 2 of the Double Taxation (Relief) Act] or Ceylon income tax or Commonwealth tax as defined in section 71 or such other tax or levy charged or imposed by the law for the time being in force as the Minister may, with the approval of the House of Representatives, declare by Order published in the Gazette; | | |
| | (m) any interest paid or payable other than that allowed under section 10 (1) (d); | | |
| | (n) any annuity, ground rent, or royalty; or | | |
| | (o) any payment to any pension, provident, savings, widows' and orphans' pension, or other society or fund, except such payments as are allowed under paragraphs (e) and (f) of subsection (1) of section 10: | | |
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| (2) For the purpose of determining the expenditure incurred in connection with travelling which is referred to in paragraph (c) of subsection (1) and in respect of which deduction is allowed under this section, such expenditure shall in relation to any person carrying on any trade or business or exercising any profession or vocation, or in relation to any executive officer in the employment of such person-
| | (i) be deemed to include the expenditure for subsistence incurred in the course of travelling by such person or officer; | | |
| | (ii) be deemed to include an allowance for lodging in respect of each night spent away from such persons' or officer's residence in connection with the trade, business, profession or vocation carried on or exercised by such person at such rate as may be prescribed if it is proved that he spent the night at any hotel, resthouse or boarding house; and | | |
| | (iii) be computed in accordance with the rates prescribed from time to time in the Financial Regulations of the Government of Ceylon for ascertaining the cost of travelling and subsistence in regard to public officers. | | |
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| (3) No person carrying on any trade or business or exercising any profession or vocation shall be entitled to any sum for depreciation by wear and tear, or for renewal, of any vehicle used for travelling for the purpose of his trade, business, profession or vocation except in the case of a vehicle used for such purpose by an officer, who is not an executive officer, in the employment of such person, and in respect of the last-mentioned vehicle such person, shall be entitled to such sum as the Commissioner may consider reasonable for such depreciation: |
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| (4) An Order made by the Minister for the purpose of paragraph (I) of subsection (1) may be declared to take effect from a date earlier than the date on which that Order is made. |
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Sri Lanka Consolidated Acts