12. Section 11 of the principal enactment is hereby amended as follows : -
| (1) in subsection (1) of that section-
| | (a) in paragraph (e) of that subsection-
| | | (i) by the substitution, in the first proviso to that paragraph, for the words " five years ", of the words " four years " ; and |
| (ii) by the substitution, in the second proviso to that paragraph, for the words " three years ", of the words " two years " ; |
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| | (b) in paragraph (h) of that subsection, by the substitution, for the words " service ; and", of the word " service ; ". , | | |
| | (c) in paragraph (i) of that subsection-
| | | (i) by the substitution, for all the words from " any contribution to a pension fund" to "society or fund,", of the following : - |
| (ii) by the substitution for the word " prescribe,", of the words " prescribe ; and " ; and |
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| | (d) by the addition, at the end of that subsection, of the following new paragraph: -
| | | " (j) such sum not exceeding three hundred rupees in any year as may be expended by a professionally or technically qualified employee in the payment of subscription to a professional or technical society of which he is a member or in the purchase of professional or technical books, journals and reports. ; and |
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| (2) by the insertion, immediately after subsection (5) of that section, of the following new subsections : -
| | ' (5A) The provisions of paragraphs (a), (b), (c) and (e) of subsection (1) shall not apply to any plant, machinery or fixtures purchased after March 31, 1957, or where statutory income is directed by the Commissioner under section 13 (2) to be computed up to any such day other than the thirty-first day of March as is specified in the direction, after such specified day in the year preceding the year of assessment commencing on April 1, 1957, and to any expenditure incurred after March 31, 1957, or after such specified day for the repair or renewal of | | |
| | (5B) There shall be deducted in respect of any year of assessment commencing on or after April 1, 1958, for the purpose specified in subsection (1), a prescribed lump sum for the depreciation by wear and tear of any plant, machinery or fixtures acquired by any person in the year preceding that year of assessment by purchase, gift, inheritance, or exchange, or in any other manner whatsoever and used by him in any trade business, profession, vocation, or employment carried on or exercised by him, such lump sum being variable according to the kind of plant, machinery or fixtures concerned. | | |
| | (5C) There shall be deducted in respect of any year of assessment commencing on or after April 1, 1958, for the purpose specified in subsection (1), a prescribed lump sum for the depreciation by wear and tear of any such building constructed in the year preceding that year of assessment as is referred to in sub-paragraph (ii) or sub-paragraph (iii) of paragraph (e) of subsection (1), such lump sum being variable according to the kind of building concerned. | | |
| | (5E)* [ * The new subsection (5D) inserted by section 11 of Act No 13 of 1959 has been repealed by section 8 of Act No. 10 of 1962] There shall be deducted, for the purpose specified in subsection (1), any sum expended for the repair (not renewal) of plant, machinery or fixtures employed for producing the income, or for the renewal or repair of any premises, implement, utensil, or articles so employed, or the cost of renewal of any plant, machinery or fixtures if no deduction for depreciation thereof has been allowed under paragraph (a) of subsection (1) : | | |
| | (5F) Where any person sells or discards any plant, machinery or fixtures purchased by him after March 31, 1957, or such specified day as is referred to in subsection (5A) , and used in producing the income from any trade, business, profession, vocation, or employment carried on or exercised by him, or any building constructed after March 31, 1957, or such specified day as is referred to in subsection (5A), which is a staff welfare building or a building for use as a dwelling house by any member of the subordinate staff employed by him in, or for the purposes of, or in connexion with, any such undertaking as is referred to in sub-paragraph (ii) or sub-paragraph (iii) of paragraph (e) of subsection (1), or which is a building occupied, for the purposes of that undertaking, otherwise than as a dwelling house, and the sale or discard occurs when or after he ceases to carry on or exercise such trade, business, profession, vocation, employment or undertaking, and a deduction for depreciation has been made under subsection (5B) or subsection (5C) in respect of the things sold or discarded, then, if the sale or discard is before the expiry of the period of likely use by reference to which the deduction for depreciation was determined, such part of the amount deducted for depreciation as is in the opinion of the Commissioner attributable to the unexpired part of such period shall be added to the profits or income of such person as a receipt of such trade, business, profession, vocation, employment or undertaking. | | |
| | (5G) Where any person sells or discards any plant, machinery or fixtures purchased after March 31, 1957, or such specified day as is referred to in subsection (5A) , and used in producing the income from any trade, business, profession, vocation, or employment carried on or exercised by him, or any building constructed after March 31, 1957 or such specified day as is referred to in subsection (5A), which is a staff welfare building or a building for use as a dwelling house by any member of the subordinate staff employed by him in, or for the purposes of, or in connexion with, any such undertaking as is referred to in sub-paragraph (ii) or sub-paragraph (iii) of paragraph (e) of subsection (1), or which is a building occupied, for the purposes of that undertaking, otherwise than as a dwelling house, and the sale or discard occurs without his ceasing to carry on or exercise such trade, business, profession, vocation, employment or undertaking, and a deduction for depreciation has been made under subsection (5B) or subsection (5C) in respect of the thing sold or discarded, then-
| | | (a) if the sale or discard is before the expiry of the period of likely use by reference to which the deduction for depreciation was determined, the Commissioner shall take into account the unexpired part of such period and determine the amount of the loss, or the amount of the profit, arising in the event of a sale from the sale or in the event of a discard from the likely sale of such plant, machinery, fixtures, or building, and where the amount of the loss is so determined, there shall be deducted that amount for the purpose specified in subsection (1), and where the amount of the profit is so determined, that amount shall be added to the profits or income of such person as a receipt of such trade, business, profession, vocation, employment, or undertaking, and where such plant, machinery, or fixtures was or were only partly used or employed for such trade, business, profession, vocation, or employment, or such building was only partly used for the purposes of, or in connexion with, such undertaking, the deduction or addition under this subsection shall be proportionately reduced; and |
| (b) if the sale or discard is after the expiry of the aforesaid period of likely use, the full amount of the sale proceeds in the event of a sale, or the full amount likely to be realized by the sale of such plant, machinery, fixtures or building in the event of a discard, shall be added to the profits or income of such person as a receipt of such trade, business, profession, vocation, employment, or undertaking, and where in the case of a discard such plant, machinery, or fixtures was or were only partly used or employed for such trade, business, profession, vocation or employment, or such building was only partly used for the purposes of, or in connexion with, such undertaking, the addition under this subsection shall be proportionately reduced. |
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| | (5H) There shall be deducted for the purpose specified in subsection (1) -
| | | (a) a sum equal to twenty per centum of the expenditure actually incurred in the purchase and installation, after March 31, 1957, or such specified day as is referred to in subsection (5A) , of any new plant, machinery, or fixtures to be used by the owner thereof in the commencement or expansion by him of a trade or business which is not an approved project, or of any profession, vocation or employment; |
| (b) a sum equal to forty per centum of the expenditure actually incurred in the purchase and installation, after March 31, 1957, or such specified day as is referred to in subsection (5A), of any new plant, machinery, or fixtures to be used by the owner thereof for the purposes of an approved project; [ยง 130 (4) (c) (2) (i), 4 of 1983.] |
| (c) a sum equal to twenty per centum of the expenditure actually incurred, after March 31, 1957, or such specified day as is referred to in subsection (5A) , in constructing or renewing any such building referred to in sub-paragraph (ii) or sub-paragraph (iii) of paragraph (e) of subsection (1) as is not to be used for the purposes of an approved project; and |
| (d) a sum equal to forty per centum of the expenditure actually incurred, after March 31, 1957, or such specified day as is referred to in subsection (5A) , in constructing or renewing any such building referred to in sub-paragraph (ii) or sub-paragraph (iii) of paragraph (e) of subsection (1) as is to be used for the purposes of an approved project: |
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| | (5J) Where in respect of a year preceding a year of assessment commencing on or after April 1, 1958, any person who is not a citizen of Ceylon and who is carrying on or exercising any trade, business, profession or vocation in Ceylon incurs any cost of passage from Ceylon to his home abroad and from such home to Ceylon of himself or of his wife, son or daughter, the amount of such cost shall be deducted for the purpose specified in subsection (1).'. | | |
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Sri Lanka Consolidated Acts