12. The following new section is hereby inserted immediately after section 16D, and shall have effect as section 16E, of the principal enactment: -
| 16E.
| | (1) Where the assessable income of any individual for any year of assessment commencing on or after April 1, 1977, is computed taking into account income immediately derived by him through his personal exertions from any profession or vocation carried on or exercised by him and such individual has ' paid during the year preceding that year of assessment premia for the purchase from the Insurance Corporation of Ceylon of a deferred annuity then -
| | | (i) a sum equal to the amount of such premia; or |
| (ii) an amount representing fifteen per centum of the profits and income of that individual for that year of assessment immediately derived by him through his personal exertions from such profession or vocation, or |
| (iii) six thousand rupees, whichever amount is the least, shall be the allowance in relation to such premia and such allowances shall be deducted from the assessable income of that individual for that year of assessment in arriving at his taxable income for that year of assessment. |
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| | (2) Where the entirety of the assessable income of an individual who is entitled to the allowance referred to in subsection (1) is aggregated with the assessable income of the head of the family of which that individual is a member, the head of the family shall be entitled to deduct from his assessable income any allowance to which that individual is entitled under that subsection. | | |
| | (3) In this section " deferred annuity " in relation to an individual means an annuity payable to that individual either upon his reaching an age of not less than fifty-five years or in such circumstances as the Minister may approve on the recommendation of the Insurance Corporation of Ceylon.'. | | |
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Sri Lanka Consolidated Acts