Income tax is charged on the basis of the provisions of the Inland Revenue Act No. 10 of 2006 as amended by Inland Revenue Amendment Acts No. 10 of 2007, 9 of 2008, 19 of 2009, 22 of 2011, 8 of 2012, 18 of 2013 and 08 of 2014.
The Inland Revenue Act provides the legal authority to charge, levy and collect income tax on the profits and income of every person or partnership, which arose or is arising to such person for every year of assessment commencing on or after 1st of April, 2006.
Sources of Profit and income :
- Profit from a trade, business, profession or vocation
- Profit from employment
- Net annual value
- Dividends, interest or discount
- Charges or annuities
- Rents, royalties or premiums
- Winnings from a lottery, betting or gambling
- In case of a non-governmental organization, any sum received by such organization by way of grant, donation or contribution or any other manner
- Income from any other source except profit of a casual and non-recurring nature
Tax free allowance of Rs. 500,000 is available for an individual who is a Citizen of Sri Lanka or Non-Citizen but Resident in Sri Lanka.
Acts
Payment of Tax
IT is payable on self assessment basis in five Installments.| Installment | Payment Date |
|---|---|
| 1st Installment | On or before the 15th day of the month of August that relevant year |
| 2nd Installment | On or before the 15th day of the month of November that relevant year |
| 3rd Installment | On or before the 15th day of the month of February that next year |
| 4th Installment | On or before the 15th day of the month of May that next year |
| Final Installment | On or before the 30th day of the month of September that next year |
Discount on Income Tax payable by Individuals
Any individuals who makes any quarterly self-assessment income tax payment, one month before the due date, is entitled to a 10% discount thereon (not exceeding such percentage on the instalment based on the current year profits).Furnishing Income Tax (IT) Returns
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Due date :
- Return of Income Tax (IT) should be furnished on or before 30th day of the month of November that end of relevant assessment year.
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Submit to :
- Relevant Branch
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