69A.
| (1) In respect of any year of assessment commencing on or after April 1, 1965-
| | (a) where an individual has made one or more approved savings and where the highest rate of income tax applicable to that individual is eighty per centum, he shall be entitled to a deduction from the income tax payable by him for that year of assessment of an aggregate sum consisting of-
| | | (i) a sum equivalent to fifty per centum of the amount of the net approved saving, or if he has made more than one approved saving, the aggregate amount of such net approved savings, in respect of that year of assessment, or a sum equivalent to fifty per centum of the portion of his taxable income on which income tax is payable at eighty per centum, whichever sum is less; |
| (ii) if the amount or the aggregate amount of such net approved saving or savings exceeds the portion of his taxable income on which income tax is payable at eighty per centum, a sum equivalent to thirty-three and one-third per centum of such excess or a sum equivalent to thirty-three and one-third per centum of the portion of his taxable income on which income tax is payable at sixty-five per centum, whichever sum is less; and |
| (iii) if the amount or the aggregate amount of such net approved saving or savings exceeds the portion of his taxable income on which income tax is payable at eighty per centum and the portion of his taxable income on which income tax is payable at sixty-five per centum, a sum equivalent to twenty-five per centum of such excess or a sum equivalent to two thousand five hundred rupees, whichever sum is less; |
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| | (b) where an individual has made one or more approved savings and where the highest rate of income tax applicable to that individual is sixty-five per centum, he shall be entitled to a deduction from the income tax payable by him for that year of assessment of an aggregate sum consisting of-
| | | (i) a sum equivalent to thirty-three and one-third per centum of the amount or the aggregate amount of such net approved saving or savings or a sum equivalent to thirty-three and one-third per centum of the portion of his taxable income on which income tax is payable at sixty-five per centum, whichever sum is less; and |
| (ii) if the amount or the aggregate amount of such net approved saving or savings exceeds the portion of his taxable income on which income tax is payable at sixty-five per centum, a sum equivalent to the tax calculated at the effective rate on the amount of such excess or calculated at twenty-five per centum on the amount of such excess where the effective rate exceeds twenty-five per centum, and the amount of such excess on which the tax is calculated shall not exceed one-fourth of his assessable income for that year of assessment or ten thousand rupees, whichever is less; and |
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| | (c) where an individual has made one or more approved savings and where the highest rate of income tax applicable to that individual does not exceed forty-five per centum, he shall be entitled to a deduction from the income tax payable by him for that year of assessment of a sum equivalent to the tax calculated at the effective rate on the amount or the aggregate amount of such net approved saving or savings or calculated at twenty-five per centum of such amount or aggregate amount where the effective rate exceeds twenty-five per centum, and the amount or aggregate amount on which the tax is calculated shall not exceed one-fourth of his assessable income for that year of assessment or ten thousand rupees, whichever is less. | | |
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| (2) " Approved saving" for the purposes of subsection (1) means-
| | (a) any payment of any premia on any such life insurance policy, or for the purchase of any such annuity, as is referred to in section 68, the amount of such payment being the excess over the amount of such premia on which the effective rate is calculated for the purposes of section 68, | | |
| | (b) any money deposited in any special account in the Central Bank of Ceylon or in such other institution as may be approved for the purpose by Order of the Minister made on the recommendation of the Monetary Board of the Central Bank of Ceylon and published in the Gazette, | | |
| | (c) any money invested in any security of the Government of Ceylon, other than money invested in Tax Reserve Certificates within the meaning of the Tax Reserve Certificates Act, No. 22 of 1957, | | |
| | (d) any money paid or payable as wealth tax for the year of assessment in respect of which a deduction is to be made under subsection (1), | | |
| | (e) any repayment of a loan taken, or debt incurred, prior to the ninth day of August, 1965, for the purchase of any property, or the repayment of any part of such loan or debt, | | |
| | (f) any repayment of a loan which was taken prior to the ninth day of August, 1965, on the hypothecation of any property, or the repayment of any part of such loan, or | | |
| | (g) any approved investment within the meaning of section 69. | | |
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| (3) Where any sum of money in an approved saving specified in paragraph (b) or paragraph (c) or paragraph (g) of subsection (2) is withdrawn or realized by the individual, who made that saving, before the expiry of a period of one year after the date of the making of that saving, then that sum of money shall not be deemed to be an approved saving for the purposes of subsection (2) and, accordingly, where any deduction from income tax was granted to that individual under subsection (1) in respect of that approved saving, then in respect of that year of assessment in which such deduction was granted an additional assessment consisting of the amount of income tax to which that individual, or if that individual is a member of a family, the head of that family, would have been liable if such deduction had not been granted, shall notwithstanding anything in this Act, be made in respect of that individual or the head of that family, and the provisions of this Act relating to notice of assessment, appeal and other proceedings shall apply in relation to such additional assessment. |
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| (4) Where an individual has made one approved saving, " net approved saving " means the amount of such approved saving, or where such individual has made more than one approved saving, "net approved savings " means the aggregate amount of such savings, after deducting therefrom any or all of the following: -
| | (a) the proceeds of the sale of any property held by that individual on the thirty-first day of March, 1964; | | |
| | (b) any loan due and repaid to that individual if such loan was outstanding on the thirty-first day of March, 1964; | | |
| | (c) the proceeds of the sale of any property or the amount of any loan repaid if such property had been purchased or such loan had been given out of the proceeds of a sale referred to in paragraph (a) or out of any money repaid as a loan and referred to in paragraph (b); | | |
| | (d) the amount of any gift in cash received by that individual; | | |
| | (e) the amount realized by the sale of any property received by that individual on or after April 1, 1964, by way of gift or inheritance; | | |
| | (f) any sum received by that individual on the maturity, or upon the surrender, of a policy of life insurance; | | |
| | (g) the amount of any retiring gratuity or any sum in commutation of pension received by that individual or any sum paid from a provident fund to that individual on his retirement, or any sum paid to that individual as compensation for loss of office or employment, after deduction from such amount or sum any income tax payable thereon; | | |
| | (h) the amount of any approved saving withdrawn or realized and in respect of which a deduction had been made from the income tax payable by that individual in any preceding year of assessment, unless it is proved to the satisfaction of the Assessor that such amount had been utilized for the purpose of making any gift; or | | |
| | (i) the value of a prize won by that individual at a sweep or lottery or the amount of any other profits of a casual and non-recurring nature received by that individual. | | |
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| (5) Where it is proved to the satisfaction of the Assessor that the whole or any part of the proceeds of the sale in respect of any year of assessment commencing on or after April 1, 1965, of any property of the description specified in paragraph (a) or paragraph (e) of subsection (4), or the amount, sum or value or proceeds of the sale, as the case may be, referred to in paragraph (b) or paragraph (c) or paragraph (d) or paragraph (f) or paragraph (g) or paragraph (i) of that subsection, was used by that individual for the purpose of-
| | | (b) paying any arrears of tax which that individual was liable to pay for any year of assessment prior to the year of assessment commencing on April 1, 1965, or for any period prior to April 1, 1965, under any written law for the time being administered by the Commissioner; or | | |
| | (c) purchasing any property other than property referred to in paragraph (c) or paragraph (g) of subsection (2); or | | |
| | (d) investing in the mortgage of any property; or | | |
| | (e) constructing a residential house, | | |
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| (6) Where the deductions for determining the net approved saving or savings of any individual for any year of assessment commencing on or after April 1, 1965, exceed the amount or the aggregate amount of the approved saving or savings for that year of assessment, then such excess shall be deducted from the amount or the aggregate amount of the approved saving or savings of the succeeding year of assessment, and, where it cannot be so deducted, then from the amount or the aggregate amount of the approved saving or savings of the next succeeding year of assessment, and so on. |
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| (7) Where in respect of any year of assessment commencing on or after April 1, 1965, an individual is entitled to a deduction from the income tax payable in respect of that year of assessment under the provisions of section 68 and this section, the deductions from the income tax payable by that individual for that year of assessment for the purposes of that section and of sub-paragraph (iii) of paragraph (a), sub-paragraph (ii) of paragraph (b), or paragraph (c), of subsection (1) of this section shall, notwithstanding anything in that section and subsection (1) of this section, be so calculated as to secure that the amount on which the deduction is calculated for the purposes of section 68 and of the aforesaid subparagraphs and paragraph of subsection (1) of this section shall not in the aggregate exceed one-fourth of the assessable income of that individual for that year of assessment or ten thousand rupees, whichever is less. |
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| (8) Where, in respect of any year of assessment commencing on or after April 1, 1965, an individual has made an approved investment within the meaning of section 69 and either where the amount of such approved investment exceeds the portion of his taxable income on which income tax is payable at eighty per centum or where income tax is not payable at eighty per centum on any portion of his taxable income, then such individual shall be entitled to a further deduction under this section of a sum equivalent to the amount of the relief from income tax to which he would be entitled if section 69 were applicable to him after deducting from such sum such portion of the deduction under this section as is attributable to the amount of that approved investment, the rate applicable for the determination of such portion of the deduction being the highest rate which will be applicable for the calculation of the deduction from income tax under this section in respect of that individual. |
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* The amendment made in section 69 by paragraph (a) of subsection (1) of section 30 of Act No. 18 of 1965 shall be deemed to have come into force on October 1, 1963, and the amendments made in the aforesaid section 69 by paragraphs (c) and (d) of subsection (1) of section 30 of Act No. 18 of 1965 shall be deemed to have come into force on March 30, 1963-See section 30 (2) Act No. 18 of 1965. |
Sri Lanka Consolidated Acts