7. The following sections are hereby inserted immediately after section 6, and shall have effect as section 6Aand section 6B of the principal enactment: -
| 6A.
| | (1) Where a capital gain or a capital loss arises from the change of ownership of any property occurring on a donation of that property by its owner to any other person, such capital gain or such capital loss shall be deemed to be a capital gain or a capital loss, as the case may be, of the donor. | | |
| | (2) Where a capital gain or a capital loss arises from the change of ownership of any property occurring on the death of the owner of that property, such capital gain or such capital loss shall be deemed to be his capital gain or capital loss, as the case may be, arising immediately before his death. | | |
| | (2A) Where a capital gain or a capital loss arises, in the year of assessment commencing on April 1, 1962, from the change of ownership of any property, occurring either on the death of the owner or on his ceasing to be resident in Ceylon, such capital gain or capital loss shall, notwithstanding anything to the contrary in the preceding provisions of this section, be deemed to be his capital gain or capital loss, as the case may be, arising in the year preceding that year of assessment. | | |
| | (3) The amount of a capital gain or a capital loss arising from the change of ownership of any property shall be computed after making the following deductions : -
| | | (a) the expenditure (other than the purchase price, if any) incurred solely in connexion with the acquisition of that property by the person who is the owner of that property immediately before the occurrence of such change of ownership ; |
| (b) the expenditure incurred by the aforesaid owner in making any improvements, additions or alterations to that property; and |
| (c) the expenditure incurred by the aforesaid owner solely in connexion with the transaction which results in such change of ownership. |
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| | (4) The amount of the net capital loss of any person for any year of assessment shall be a capital loss of that person for the next succeeding year of assessment. | | |
| | (5) Where the aggregate amount of the capital gains of any person for any year of assessment which arise in respect of movable property other than stocks, shares, debentures or debenture stocks does not exceed two thousand rupees, such amount shall be deemed not to be that person's capital gain for that year of assessment. | | |
| | (6) Where any person-
| | | (a) has no taxable income for the three years of assessment preceding any year of assessment, or |
| (b) has a total assessable income for those three years of assessment which is less than the total of the allowances which under section 23E are required to be deducted from that assessable income in arriving at his taxable income for those three years of assessment, |
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| | (7) Where the taxable income of a person includes any net capital gain, and the rate of the tax payable on a part of such income (hereafter in this subsection referred to as the "relevant part of the income") exceeds 45 per centum, then, in regard to the relevant part of the income, the tax shall be computed as follows : -
| | | (a) if the relevant part of the income exceeds the amount of the net capital gain-
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| (b) if the relevant part of the income is less than the amount of the net capital gain, the tax payable on the entirety of the relevant part of the income shall be 45 per centum notwithstanding anything to the contrary in this Ordinance. |
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| | (8) Where a person dies and he has any net capital loss for the last year of assessment for which he was liable to be assessed for the tax, the amount of such net capital loss shall, as far as is practicable, be deducted from his statutory income from all sources for such last year of assessment, and, if it cannot be so deducted, from his statutory income from all sources for any (in order of recession) of the three years of assessment preceding such last year of assessment; and where such deduction is made from his statutory income for any such preceding year of assessment, the tax for that year of assessment in respect of him shall, notwithstanding the provisions of section 79, be revised taking into consideration such deduction, and the amount of the difference in the tax originally imposed on him in respect of that year of assessment and the amount of the revised tax for that year of assessment shall, if there is an executor of the deceased, be refunded to such executor, and, if there is no such executor, be refunded to such person or persons as is or are in the opinion of the Commissioner entitled to such refund. | | |
| | (9) In this section-
| | | (a) the expressions " capital gain", " capital loss " and " net capital gain " shall have the same meanings as are assigned to them in subsection (2) of section 6; and |
| (b) " net capital loss ", in respect of any year of assessment, means the excess of the capital loss for that year over the capital gain for that year. |
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| 6B.
| | (1) Where any person-
| | | (a) who has no taxable income for the three years of assessment preceding any year of assessment, or |
| (b) the total of whose assessable income for those three years of assessment is less than the total of the allowances which under section 23E are required to be deducted from that assessable income in arriving at his taxable income for those three years of assessment, |
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| | (2) The provisions of subsection (7) of section 6A shall apply in regard to the computation of the tax on any taxable income which includes the value of a prize won at a sweep or lottery as if the reference therein to " any net capital gain" were a reference to " the value of a prize won at a sweep or lottery" and the reference therein to " amount of the net capital gain" were a reference to "value of such prize ".'. | | |
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Sri Lanka Consolidated Acts