The Inland Revenue Department said that individuals earning less than Rs. 1.8 million annually can now avail relief on Advance Income Tax (AIT) levied on interest or discounts received from deposits.
To avail this tax relief, eligible individuals must submit a self-declaration to their respective banks or financial institutions. With effect from today (01), the Inland Revenue Department has instructed these institutions to implement a 10 percent deduction in AIT on interest and discounts payable to depositors.
According to the new order, banks and financial institutions acting as withholding agents must deduct 10 percent AIT on interest, discounts and income received from Islamic finance transactions originating in Sri Lanka. However, individuals whose annual assessable income does not exceed Rs. 1.8 million can reclaim the amount deducted by submitting a self-declaration detailing their total income.
In addition to the AIT concession, the government has amended the Personal Income Tax Regulations. Effective today, the taxable monthly income limit has been increased from Rs. 100,000 to Rs. 150,000, providing tax concessions to low-income earners.
In addition, a 15 percent tax has been implemented on income from services provided to foreign countries under the amendments to the Inland Revenue Act.
Meanwhile, stamp duty on lease and rental agreements has also been revised. The fee, which was earlier fixed at Rs. 10 per Rs. 1,000 or part thereof, has now been doubled to Rs. 20, the Finance Ministry confirmed.
