Sri Lanka Consolidated Acts

[Index] [Table] [Database Search] [Name Search] [Previous] [Next] [Help]

Inland Revenue Act (No. 38 of 2000) - Sect 95

How certain receipts of insurance are to be treated

95. Where any sum paid as Insurance premium is allow able as an expense incurred in the production of profits or income from any trade, business, profession or vocation, any sum realized under such contract of insurance shall be deemed to be"
(a) receipts from such trade, business, profession or vocation. if the sum so realized is in respect of stock in trade or loss of profits or any other sum not referred so in subparagraph (h) or subparagraph (c) ;
(b) an amount realized from the disposal of property, if the sum so realized is in respect of a capital asset on which an allowance for depreciation, within the meaning of subsection (7) of section 23. has been granted and accordingly, the provisions of subsection (3) of that section shall apply to. and in relation to. that amount :
(c) an amount realized from the change of ownership of property, if the sum so realized is in respect of a capital asset on which an allowance for depreciation within the meaning of subsection (7) of section 23 has not been granted, and accordingly, the provisions of section 7 shall. apply to. and in relation to. that amount ;
Provided that the provisions of 'paragraph (b) and paragraph (c) shall not be applicable if the sum realized is in respect of a capital asset which is replaced, and in such event the deduction for depreciation in accordance with the provisions of paragraph (b) of subsection (1) of section 23, shall be computed on the cost of replacement of such capital asset less the amount realized under a contract of insurance.


[Index] [Table] [Database Search] [Name Search] [Previous] [Next] [Help]