7. The following new sections are hereby inserted immediately after section 16, and shall have effect a sections 16A, 16B and 16c, of the principal Act: -
| 16A
| | (1) In this section " approve donations " means a donation not less in amount than one thousand rupees-
| | | (a) made in money or otherwise to the Government of Ceylon, or |
| (b) made in money to any approve charity within the meaning of section 67 or to any such public charitable trust or institution as is declared by the Minister by notice published in the Gazette to be an approve charity for the purposes of the section. |
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| | (2) Where the entirety of the asses. able income of a wife or a child for an year of assessment is aggregated wit the assessable income of the head of the family of which such wife or child is member, any approved donation made by such wife or child shall, for the purpose of this section, be deemed to be a approved donation made by the head of the family. | | |
| | (3) Where in the year preceding and year of assessment commencing on the after April 1, 1969, any person has, or is deemed to have, made an approved donation, then-
| | | (a) one-half of the actual amount of the donation; or |
| (b) an amount representing one- twentieth of the assessable income of that person for that year of assessment or if that person is a company an amount representing one-fortieth of the assessable income of that company for that year of assessment; or |
| (c) twenty-five thousand rupees, whichever amount is the least, shall be the allowance in relation to that donation and such allowance shall be deducted from the assessable income of that person for that year of assessment in arriving at his taxable income for that year of assessment |
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| | (4) Where a person has, or is deemed to have, made in the year preceding any year of assessment two or more donations, whether to the same approved charity or to different such charities, or to the Government of Ceylon, or to one or more approved charities and to the Government of Ceylon, the aggregate amount of the donations, if such amount is not less than one thousand rupees, shall for the purposes of this section in relation to that year of assessment be treated as one approved donation. | | |
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| 16B
| | (1) Where an individual during the year preceding any year of assessment commencing on or after April 1, 1969-
| | | (a) has paid or is deemed to have paid any premia on a life insurance policy or for the purchase of an annuity; or |
| (b) makes any contributions to any such provident fund or pension fund as is approved by the Commissioner or to a regulated provident fund, |
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| | (2) Where the entirety of the assess able income of a wife or child for an year of assessment is aggregated with the assessable income of the head of the family of which such wife or child is member, any premia paid or contributions made by the wife or child shall for the purposes of this section, be deemed to be premia paid or contributions made by the head of the family. | | |
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| 16C
| | | (2) Where the entirety of the assessable income of a wife or child for any year of assessment is aggregated with the assessable income of the head of the family of which such wife or child is a member, any approved investment made by such wife or child shall be deemed to be an approved investment made by the head of the family. | | |
| | (3) Where in the year preceding any year of assessment commencing on or after April 1, 1969, an individual has made or is deemed to have made an approved investment, then-
| | | (a) an amount equal to one-half of the actual amount of that investment, or |
| (b) an amount representing one-tenth of the assessable income of that individual, or |
| (c) twenty-five thousand rupees, |
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| | (4) Where an individual has, or is deemed to have, made in any year of assessment two or more approved investments, the aggregate amount of such investments shall be treated as one approved investment for the purposes of this section. | | |
| | (5) Where an allowance has been granted to an individual under sub section (3) in respect of an approved in vestment and where, within a period of six years after the date of such investment, the ownership of that investment changes otherwise than by the death of the individual who made that investment or any sum of money in that investment is withdrawn or realized by the individual who made that investment, then in respect of the year of assessment in which such allowance was granted an additional assessment consisting of the difference between the amount of income tax to which the individual who has been granted the allowance would have been liable if such allowance had not been granted and the amount of tax charged for that year of assessment shall, notwithstanding anything in this Act, be made in respect of that individual and the provisions of this Act relating to notice of assessment, appeal and other proceedings shall apply in relation to such additional assessment.'. | | |
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Sri Lanka Consolidated Acts