Should you file Income Tax Returns in Sri Lanka?

This article talks about requirements under inland revenue act in relation to furnishing of income tax returns

Following persons shall not required to file return.

** Profit from employment does not exceed 1 million and PAYE tax has been deducted.

( There are certain provisions in relation to calculation of profit from employment under income tax law. This include Cash Benefits, Non Cash Benefits and payment to third person for the benefits of employee and also Value of conveyance granted, receipts at retirement and Rental value)

** Dividends on which tax at 10% has been deducted

** Interest on which tax has been deducted

Following persons are required to furnish income tax returns

Any person who carries on trade, business, profession or vocation including any company which entered into an BOI agreement.

Any individual, who satisfies any of the four requirements out of the file requirements mentioned below, shall submit a return of income to the commissioner not later than one month after the fulfillment of such requirements.

1. Monthly residential electricity bill exceeding a net amount of Rs. 10,000

2. Monthly credit card bill exceeding Rs. 25,000

3. Monthly residential Telephone bill exceeding a net amount of Rs. 10,000

4. Purchasing an air ticket to travel abroad

5. Owning a motor vehicle which is used for travelling purpose.

Documents to be furnished along with the return

1. Audit Report

2. Certificates and Schedules

Penalty for failure to furnish a return

Commissioner general may impose a penalty not exceeding Rs. 50,000 in this case.

Pls keep you comment about this article, If you have any question write them as a comment, we are ready to reply them.