| (1) Subject to the provisions of subsection (3), the expenditure of an assessee shall be deemed not to include the following, proof of which shall be adduced by the assessee to the satisfaction of the Commissioner: -
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| (a) Expenditure incurred by any other person for or on behalf of the assessee by way of customary hospitality or which is of a trivial or inconsequential nature. | | |
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| (b) Any such expenditure incurred by the assessee in the production of profits or income from any trade, business, profession, vocation or employment carried on or exercised by him as is allowed by the Income Tax Ordinance to be deducted for the purpose of ascertaining his profits or income, and any capital expenditure incurred by him in the production of such profits or income. | | |
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| (c) Any such expenditure incurred by the assessee for travelling in connection with any trade. business, profession or vocation carried on or exercised by him as is allowed by the Income Tax Ordinance to be deducted for the purpose of ascertaining his profits or income. | | |
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| (d) Any expenditure incurred by or on behalf of the assessee wholly and necessarily in connection with the discharge of any duties assigned to him by the Government. | | |
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| (e) Any expenditure incurred by the assessee wholly and exclusively for advertising in connection with any trade, business, profession, vocation or employment carried on or exercised by him. | | |
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| (f) Any expenditure incurred by the assessee by way of the acquisition of any immovable property or the construction, repair or improvement of any immovable property. | | |
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| (g) Any expenditure incurred by the assessee by way of investment in deposits, loans, shares or securities. | | |
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| (h) Any expenditure incurred by the assessee by way of paying premiums in respect of any policy of insurance on his life or for insuring his health or covering any accident which may befall him or any disability to which he may become subject, or of paying premiums for the purchase of an annuity. | | |
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| (i) Any expenditure incurred by the assessee by way of the acquisition of any bullion, precious stones or jewellery. | | |
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| (j) Any expenditure incurred by the assessee by way of the purchase of any undertaking or by way of contribution as capital to a firm in consideration of a share in the profits of the firm or by way of the purchase of the share of a partner of a firm in the capital of the firm. | | |
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| (k) Any expenditure incurred by the assessee by way of repayment of any debt or by way of payment of interest thereon. | | |
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| (l) The excess of the aggregate amount of the expenditure incurred by the assessee in any year by way of giving gifts over the sum of two thousand rupees. | | |
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| (m) Any ground rent payable by the assessee. | | |
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| (n) Any annuity or other sum which the assessee is legally bound to pay. | | |
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| (o) Any expenditure incurred by the assessee by way of the payment of estate duty, income tax, excess profits duty, profits tax, or Personal Tax or any rates or tax levied on immovable property, or any stamp duty under the Stamp Ordinance, 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. | | |
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| (p) Any expenditure incurred by the assessee by way of the payment of any sum under an order of any court. | | |
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| (q) Lawyers' fees paid and other expenses incurred in connection with any proceedings in any court or before any tribunal or before any arbitrator whose award is enforced by a judgment of any court. | | |
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| (r) Any expenditure, not exceeding two thousand rupees, incurred by the assessee in connection with the funeral of any member of his family. | | |
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| (s) Any expenditure, not exceeding two thousand rupees, incurred by the estate of the assessee, if he is dead, in connection with his funeral. | | |
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| (t) Any expenditure, not exceeding two thousand rupees, incurred by the assessee in connection with the birth of any member of his family. | | |
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| (u) Any expenditure, not exceeding three thousand rupees, incurred by the assessee in connection with his marriage. | | |
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| (v) Any expenditure, not exceeding three thousand rupees, incurred by the assessee in connection with the marriage of any member of his family. | | |
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| (w) Any expenditure actually incurred by the assessee in obtaining for himself, or in providing to any member of his family, medical treatment, such expenditure being that in respect of hospital or nursing home charges, doctors' fees, cost of drugs, and nurses' and attendants' charges. | | |
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| (x) Any expenditure incurred by the assessee in making good any loss of his or of any member of his family arising from theft or from fire, flood or other elemental cause. | | |
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| (y) Any expenditure, not exceeding eight thousand rupees, incurred by the assessee in providing technical or university education abroad to each of his children. | | |
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| (z) Where the assessee is not a citizen of Ceylon, any expenditure incurred by him in educating his children abroad. | | |
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| (aa) Where the assessee is not a citizen of Ceylon, the cost of his passage and the passage of any member of his family in proceeding to and back from his home abroad. | | |
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| (ab) Where the assessee is a candidate at an election of a Member of the House of Representatives, any expenditure incurred by him which is authorized by any written law to be incurred by him as such candidate. | | |
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| (ac) Any expenditure incurred by the assessee by way of making donations which are approved donations within the meaning of section 46 of the Income Tax Ordinance | | |
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| (ad) Any expenditure incurred by the assessee by way of paying any bonus, gratuity or pension not exceeding three thousand rupees per annum to any person or to any dependant of that person in respect of that person's past services to the assessee. | | |
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| (ae) Any contribution made by the assessee as an employer or employee to any pension or provident fund. | | |
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| (af) Any expenditure, not exceeding five thousand rupees, incurred by the assessee in making not more than one pilgrimage abroad in his life time. | | |
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Sri Lanka Consolidated Acts