With reference to the guideline issued under the provisions of the Inland Revenue Act No.24 of 2017, which is in effect from 01st April 2018, each person (Corporates and Individuals who pays Income Tax) who is liable to pay income tax and it is required to submit a Statement of Estimated Income Tax Payable for the Year of Assessment 2018/2019 on or before 15th August 2018.
According to the instructions issued by the IRD for the year of Assessment 2018/2019 tax payers are given two options.
- Submit the statement of estimated income and pay the tax instalment on due date.
- In the event of any inconvenience by a person in calculating the estimated income tax and installments, the relevant estimated tax and the installments can be calculated by adding 5% to the previous year tax liability (Y/A 2017/2018) and pay in four installment.
(This option is applicable only for the year of assessment 2018/2019)
- The statement of Income and Tax Payable submitted to authority will remain in force for the whole year of assessment with provision to submit the revised statement if necessary. In the event of revised statement of income, payment of taxes should be carried out accordingly.
- Payment made prior to instalment and Tax withheld can be deducted in arriving at final instalment.
- Economic Service Charge paid will be considered as tax paid prior to the instalment
- If any person having accumulated tax loss, need to file NIL statement
Non Submission/Delayed Submission
A penalty 5% of the amount of tax owing, plus 1 % for each month during which failure to file continues and Rs 50,000/- plus a further Rs 10,000/- for each month during which the failure continues (Maximum of Rs 400,000/-)
Default of payment
The persons who fail to pay all or part of an instalment, within 14 days of the due date of the instalment shall be liable to pay 10% of the amount of tax due and 1.5 % interest.
In case of penalty and interest imposed for non-submission of the statement or payment of installment, will be set off from the next installment paid.
Due date of payment of installment – Year of assessment 2018/2019
- First instalment and statement of estimate – 15th August 2018
- Second installment – 15th November 2018
- Third instalment – 15th February 2019
- Fourth instalment – 15th May 2019
Discount on Personal Income Tax
10% discount provided to the personal tax payers for payment of tax liability one month prior to the due date no more in force.