View All - 2000 Acts Section No : Acts & Ordinances INLAND REVENUEMarginal Notes1. This Act may be cited as the Inland Revenue Act, No. 38 of 2000.2. Imposition of Income Tax. 3. Income chargeable with tax. 4. Profits from employment. 5. Net annual value of land and improvements thereon or of any place of residence. 6. Profits or income arising from rents of land and improvement thereon. 7. Capital gain. 8. Exemption from income tax of certain persons (other than individuals) on the whole or any part of their profits and income. 9. Exemption from Income Tax of certain profits and income of certain officers and employees. 10. Exemption from Income tax of certain interest received. 11. Exemption from income tax of certain interest 12. Exemption from income tax of certain profit and income from lands and improvements thereon. 13. Exemption from income tax of certain subsidies. 14. Exemption from income tax of certain capital gains. 15. Miscellaneous exemptions from income tax 16. Exemption of certain profits and income of any resident guest. 17. Exemption from income tax for five years of the profits and income of certain companies. 18. Exemption from income tax of the profits and income of any undertaking which provides certain services. 19. Exemption from income tax of the profits and income of any company engaged in non plantation agricultural activities. 20. Exemption from income tax of profits and income of a company which exports fresh or processed vegetables or fruits and cultivates vegetables or fruits. 21. Exemption from income tax of profits from the construction and first sale of certain houses. 22. Power of Commissioner-General to recommend cancellation of approval granted under section 17. 23. Ascertainment of profits or income. 24. Deductions not allowed in ascertaining profits and income. 25. Basis for computing statutory income. 26. Appointment of profits. 27. Total statutory income. 28. Aggregation of the total statutory income of a child with that of his parent. 29. Deductions from total statutory income in arriving at assessable income. 30. Taxable income. 31. An allowance in respect of qualifying payments. 32. Rates of income tax on persons other than companies. 33. Special provision relating to taxation of interest on compensation payable in respect of property vested in the Government the Land Reform commission or a public corporation or a local authority. 34. Deductions of income tax from interest payable on certain deposit accounts. 35. Rate of income tax on gross interest on loans granted by a company, partnership or other body of persons outside Sri Lanka. 36. The rate of income tax on royalty payable to any company partnership or other body of persons outside Sri Lanka. 37. The rate of income tax on profits from employment for a specified period of a non citizen employed in Sri Lanka. 38. Rate of income tax on the profits and income of any foreign currency banking unit. 39. Rate of income tax on profit from certain undertakings earned on by a person other than a company. 40. Rate of income tax on profits from certain undertakings carried on by a company. 41. Rate of income tax on dividends paid out of profits taxed in accordance with section 40. 42. Deduction from tax payable by any quoted public company under certain conditions. 43. Deduction from tax payable by any company which obtain a quotation of its shares and satisfies certain further conditions. 44. Rate of income tax on qualified export profits and income of person not being a company, who commenced to carry on any specified undertaking. 45. Rate of income tax an qualified export profits and income of a company which commenced to carry on any specified undertaking. 46. Rate of income tax on qualified export profits and income of a person(not being a company )who carries on any specified undertaking. 47. Rate of income tax on qualified export profits and income of a company which carries on any specified undertaking. 48. Rate of income tax on dividends out of exports profits and income. 49. Rate of income tax on deemed exports of any person or partnership. 50. Rate of income tax on profits and income from service rendered out side Sri Lanka by any resident company or partnership. 51. Rate of income tax on employment and fees earned in foreign currency by an individual or by partnership. 52. Interpretation. 53. Income tax to which any resident company is liable. 54. Advance company tax on qualifying distribution to which resident companies are liable. 55. Dividend consisting of any qualifying distribution when received by a resident person other than a company. 56. Resident company to maintain a record of dividends received. 57. Income tax to which any non resident company is liable. 58. Certain dividends not to form part of the assessable income of the receiving company. company. 59. Profits of a company from transactions with its shareholders. 60. Every resident company to deduct income tax from any dividend received from any quoted public company and payable to any non-resident person. 61. Resident company entitled to deduct tax from any dividend. 62. Certain undistributed profits to be treated as distributed. 63. Provisions applicable where the profits and income of a company are appropriated by the director. & c. of that company. 64. Assessment of child's income. 65. Returns to be furnished by receiver and trustee and their liability to tax. 66. Chargeability to tax of trustee of an incapacited person. 67. Liability of executor to tax payable by deceased person. 68. Return to be furnished by executor and changeability of an executor and beneficiary. 69. Joint trustees and executors. 70. Every unit trust deemed to be a company. 71. Assessment of partnership income. 72. Assessment to be made in the name of the partnership in certain circumstances. 73. What constitutes residence. 74. Chargeability of certain profits of non resident persons. 75. Persons assessable on behalf of a non-resident person. 76. Liability of certain non-resident persons. 77. Profits of certain business to be computed by a percentage of the turnover. 78. Profits of non resident person from sale of exported produce. 79. Liability to income tax of certain profits on non-resident person. 80. Exemption from income tax of non-resident persons in certain cases and liability of certain non-resident persons to income tax at reduced rates. 81. Profits of non-resident ship owners or charterers. 82. Master of ship to be an agent. 83. Refusal for clearance for ship where income tax is in arrears. 84. Profit of non-resident owners or characters of aircraft. 85. Application of subsection (2) of section 81,section 82, and section 83 to profits of non-resident owners or charterers of any aircraft. 86. Ascertainment of profits of insurance companies. 87. Ascertainment or profits of the Insurance Corporation of Sri Lanka from the business of life insurance. 88. Interest on certain loans deemed to be profits and income. 89. Certain royalties deemed to be profits and income. 90. Deduction of income tax from interest &c. payable to persons outside Sri Lanka. 91. Deduction of income tax from payment made to any foreign entertainer or artist. 92. Effect of agreements for double taxation relief. 93. Relief in respect of Sri Lanka income tax. 94. Applicability of provisions relating to particular sources of profits or income. 95. How certain receipts of insurance are to be treated. 96. Ascertainment of income of clubs, trade, associations &c. 97. Certain transactions and dispositions to be disregarded. 98. Returns and information to be furnished. 99. Audit reports to be furnished by partners & c. 100. Returns and other documents to contain the national identity card number or passport number. 101. Returns to be furnished of income received on account of or paid to other persons 102. Occupiers to furnish returns of rent payable. 103. Return of lodgers and inmates. 104. Power of Commissioner-General to impose penalty for furnish return. 105. Payment of tax by self-assessment. 106. Employees to deduct income tax. 107. Employers to give notice to Commissioner-General. 108. Application of income tax tables. 109. Directions to employers. 110. Employers to maintain proper records. 111. Duties of employee following deductions from Income Tax. 112. Adjustments of amount of income tax not paid or paid in excess. 113. Employee to give notice when necessary deductions are not made. 114. income tax deducted not to form part of assets of employers. 115. Defaults in the deduction or payments of income tax. 116. Issue of Assessments on employers. 117. Appeals. 118. Penalty for default. 119. Credit for tax paid. 120. Compliance with the provisions of this Chapter relating to forms. 121. Interpretation. 122. Bank and financial institution to deduct income tax. 123. Credit for tax deduction. 124. Issue of direction. 125. Duties of bank and financial institution following deductions of income tax. 126. Default in the deduction of income tax. 127. Issue of assessment on bank and financial institution. 128. Appeals. 129. Penalty for default. 130. Interpretation. 131. Specified persons to deduct income from specified fees. 132. Provisions of Chapter XV to apply in relation to the deduction under this Chapter of income tax from specified fees. 133. Retention of fifteen per centum of moneys lying to the credit of a contributor to a specified provident fund to meet any tax payable. 134. Assessment and additional assessments. 135. Notice of assessment 136. Appeals to the Commissioner - General. 137. Constitution of the Board of Review. 138. Appeals to the Board of Review. 139. Commissioner General may refer appeals to the Board of Review. 140. Hearing and determination of appeals by the Board of Review. 141. Appeal on a question of law to the Court of Appeal. 142. Assessment or amended assessments to be final. 143. Penalty for incorrect return. 144. Tax in default and sums added thereto. 145. Tax to include fines &c. 146. Tax to be a first charge. 147. Notice to defaulter. 148. Recovery of tax by seizure and sale. 149. Proceedings for recovery before Magistrate. 150. Recovery of tax out of debts &c. 151. Transfer of immovable property to Government in lieu of payment of tax in cash 152. Tax in default to be recovered from renumeration of employee. 153. Tax in default of partner to be recovered from the assets of a partnership. 154. Recovery of income tax from the income of a child. 155. Recovery of income tax payable by a beneficiary from the trustee. 156. Recovery of income tax payable by a beneficiary from the executor. 157. Gift tax to be recovered from the donee in certain circumstances. 158. Recovery of tax from persons leaving Sri Lanka. 159. Use of more than one means of recovery. 160. Power of Commissioner-General to obtain information for the recovery of tax. 161. Liabilities of directors of private company in liquidation. 162. Delegation of Commissioner-General's powers and functions. 163. Signature and service of notice. 164. Validity of notice assessment &c. 165. Precedent partner to act on behalf of a partnership. 166. Principal officer to act on behalf of company or body of persons. 167. Who may act for incapacitated or non-resident person. 168. Indemnification of representative. 169. Tax paid in excess to be refunded. 170. Interest payable on the amount of a refund in certain circumstances. 171. Penalties for failure to make returns making incorrect returns &c. 172. Breach of secrecy and other matters to be offences. 173. Penal provisions relating to fraud, &c. 174. Tax to be payable notwithstanding any prosecution or conviction for an offence under this Act. 175. Prosecutions to be with the sanction of the Commissioner-General. 176. Admissibility of statement and documents in evidence. 177. Officers. 178. Official secrecy. 179. Inland Revenue Incentive Fund. 180. Commissioner-General may pay rewards to information. 181. Regulation. 182. Forms. 183. Power to search buildings or places. 184. Power to search business premises. 185. Sinhala text to prevail in case of inconsistency. 186. Interpretation. 187. Application of the Inland Revenue Act No. 28 of 1979.