Thank you for continuous stream regarding the Sri Lankan economy. I really appreciate your effort.❤ However your explanation here seems incorrect. The 5% WH Tax should be 75000 lkr per annum for a 1500000 lkr interest.
That's called dual taxing. inland revenue dept must hunt for Big fish and not beggars and senior citizens who live hand to mouth. All senior citizens must be exempted from taxes. If not their medical bills be paid by government, I propose. It was only a year back that banks paid a good interest. From that also 5% was grabbed mercilessly. Having done so, IRD now wants more and more taxes from FD holders. How sad. In future banks coffers will be empty. No body wants to deposit hard earned money for a Penny.
If a person already have a income (as salary) with more than 12 laks and APIT is already paid, and there is another FD income, 1. If fd incone is less than 12 laks, do we need to pay extra tax (except withholding) because total income is increased? 2. If fd income is more than 12 laks, the taxable amount is added value? Ie. Fd income+fd income? Or tax is applied seperately?
This explanation is incorrect , In your example math like below, If interest is 15 laks 5% WHT is Rs 75,000 According to new tax, you should pay for 3laks worth of tax for above (3laks*6% = 15,000LKR) To avoid double tax, redeem 75,000 LKR and pay only 15,000LKR, Simple and cheap :D PS -- **Valid only if your total income is above mentioned interest. **Dont invest money in sri lanka, There are tax free countries you could invest in.