7.
| (1) Where the surrender value of a certificate which is surrendered is more than the tax due, there shall be applied in payment of the tax such portion of the denominational value of the certificate as with interest on that portion is equal to the amount of the tax, and the Superintendent shall-
| | (a) pay to the certificate holder a sum equal to the balance of the denominational value of the certificate without interest, or | | |
| | (b) if the certificate holder so requests, issue to him a new certificate or certificates of a denominational value equal to such balance or, if it is impracticable to do so, issue to him a new certificate or certificates of a denominational value equal to a part of such balance and pay to him the remainder of such balance in money. | | |
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| (2) Where any amount is payable to the certificate holder under subsection (1), the Commissioner of Inland Revenue shall deliver to him a written statement setting out-
| | (a) the number and denominational value of each certificate surrendered by him and the date of issue of such certificate; | | |
| | (b) the date of surrender; and | | |
| | (c) the sum in payment of which the certificate was surrendered and the date on which such sum fell due for payment. | | |
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| (3) No certificate holder shall be entitled to recover any payment or to receive any new certificates under subsection (1), except upon production to the Superintendent of the statement delivered to the certificate holder under subsection (2). |
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| (4) Every new certificate issued under this section shall be dated as of the date of issue of the original certificate upon the surrender of which the new certificate is issued and shall be deemed for the purpose of this Act to have been issued on that date. |
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| (5) The amount of any interest forming part of the surrender value of any certificate shall be exempt from income tax and profits tax. |
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Sri Lanka Consolidated Acts