SET- E 2024/2025

INSTRUCTIONS FOR COMPLETION THE STATEMENT OF ESTIMATED TAX

PAYABLE AND PAYMENT OF QUARTERLY INSTALMENTS
YEAR OF ASSESSMENT 2024/2025

In terms of Sections 90 and 91 of the Inland Revenue Act, No. 24 of 2017 and as
amended by Amendment Act, No. 10 of 2021 , Amendment Act, No 45 of 2022 , a
person who is an “instalment payer” shall pay income tax on the estimated taxable
income as computed in the Statement of Estimated Tax Payable, by quarterly
instalments on the 15th of August, 15th of November and 15th of February in that year of
assessment and the 15th of May of the next succeeding year of assessment and is required
to submit the Statement of Estimated Tax Payable by the date for payment of the first
tax instalment i.e. 15th August 2024.

It is strongly advised to read this set of instructions before completing the Form for
Statement of Estimated Tax Payable (SET).
This sets of instructions consist of;
 General Instructions
 Instructions to Complete the SET and
 Calculation of Quarterly Installments of income tax payable

1. GENERAL INSTRUCTIONS

The SET consists of three parts, PART I, II and PART III. All instalment payers should
complete all three PARTS of the SET.
1.1 Issuance and Submission
 Issuance
In terms of Section 113 (1) of the Inland Revenue Act No 24 of 2017, and as
amended by the Inland Revenue (Amendment) Act No 10 of 2021 & No 4 of
2023, e-filling of tax returns (electronically filling returns) is mandatory for
all persons who file the Income Tax returns.
Arrangements have been made for E- Filling via IRD web portal. Please refer
the guidelines issued by IRD in the web portal www.ird.gov.lk for further
information. Therefore all such taxpayers are encouraged to use online
platforms to E-file the SET form for Y/A 2024/2025.
SET will be issued by the Commissioner General of Inland Revenue to
persons who are chargeable with income tax. Those who have not received
the SET (Individuals whose estimated assessable income exceeds more than
Rs. 1,200,000 for the Year of Assessment 2024/2025) shall make a request to

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 obtain a SET from the Customer Supporting and Promotion Unit at the IRD
Head Office or from any Regional Office.

 Submission
All such taxpayers are encouraged to use online platforms to E-file the SET form
for Y/A 2024/2025. Duly completed SET could be hand delivered or sent through
registered post to the Central Document Management Unit (CDMU) at the
Head Office of the Inland Revenue Department (IRD), Sir Chittampalam A
Gardiner Mawatha, Colombo 02 or to any Regional Office.

1.2 Payment of Estimated Tax

 Payment Due Dates and period codes

The estimated tax shall be paid in quarterly instalments by the following dates using
following period codes

Tax Instalment Due Date of payment Payment Period

Code
First Instalment 15th August 2024 24251
Second Instalment 15th November 2024 24252
Third Instalment 15th February 2025 24253
th
Fourth Instalment 15 May 2025 24254

 Payment of Tax
The payments of quarterly instalments of tax should be made using paying-in-slips
issued by the IRD and posted to the taxpayers. The Paying -in-slips can also be
collected from Customer Supporting & Promotion Unit at the IRD Head Office, all
Regional Offices and from any branch of the Bank of Ceylon.

In addition, payment can be made through Online Tax Payments Platform (OTPP).
For further details, please refer to Public Notice Number PN/PMT/2021 dated
08.06.2021 (Revised) dated May 17, 2022 PN/PMT/2022 .01 or log into IRD’s web
portal for the user guide (e-Services/Overview and Quick Guides/Payments and
Refunds).

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 As per the extraordinary Gazette Notification No 2378/33 dated April 4, 2024
Published under section 145 (3) of Inland Revenue Act No 24 of 2017. Tax
Payment shall be made to the commissioner General only by the use of following
methods –
a) By deposit cash:
b) By deposit pay order or bank draft:
c) By the use of online tax payments platform (OTPP)

 Bank to which the payments should be made

To any branch of the Bank of Ceylon.

2. INSTRUCTIONS TO COMPLETE THE SET - 2024/2025

Mark ‘’’’ at the relevant cage to indicate whether the Statement is the Original
Statement, or Revised Statement. The first SET furnished by a person for a year of
assessment is treated as “Original Estimate”. Original estimate shall remain in force for
the whole year of assessment unless a revised estimate is submitted by the taxpayer.

If the estimated tax payable is varied from the original SET, a revised SET could be
submitted and subsequent instalment payments should be made accordingly. Further,
in the event of submitting a revised estimate, it is important to mark ‘’’’ in the cage
of, “Revised Statement” of the SET.

Also indicate the Income tax type. Persons other than Individuals and Partnerships
should mark the cage of Corporate Income Tax.

(Please mark ‘’’’ at the relevant cage)

STATEMENT TYPE: Original Statement Revised Statement

INCOME TAX TYPE: Corporate Income Tax Individual Income Tax
Partnership

2.1 PARTS – I and II : CALCULATION OF ESTIMATED TAX PAYABLE

I. Local Income
The amounts of estimated income from each source of income should be
declared in cages (10), (20), (30) and (40) of the SET.

II. Foreign Income

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 The aggregate amount of estimated foreign source of income from employment,
business, investment or other source of income should be declared in cage 40A
of the SET.

III. Cage 50 - Estimated Assessable Income. (Aggregation of all local estimated

income with all foreign estimated income)

a) Total estimated income from employment, business, investment (other

than the gain from realization of investment assets) or other income source
would be the total Local estimated assessable income of a person.
Enter total of all income enumerated under cages 10 to 40 & 40A into the
cage 50.
b) When calculating estimated assessable income, final withholding
payments and exempt amounts should not be included.

IV. Cage 60 – Estimated Qualifying Payments

Enter all estimated qualifying payments to be made during the year (subject to
following restrictions).

 Donations to Approved Charitable Institution

Type of donor Maximum amount deductible as qualifying payment

Individual (a) 1/3 of the taxable income of the individual for that year
of assessment; or
(b) Rs. 75,000
whichever is lower

Entity (a) 1/5 of the taxable income of the entity for that year of
assessment; or
(b) Rs. 500,000
whichever is lower

 Donations to Government or other specified institutions

 Any sum paid to the Consolidated Fund or President’s fund
 Contribution made by a resident individual to establish a shop for a female
individual who is from Samurdhi beneficiary family
 Expenditure incurred by any financial institution by way of cost of
acquisition, partial acquisition, absorption of business or merger of, any
other bank licensed under the Banking Act, No. 30 of 1988, finance
company licensed under the Finance Business Act, No. 42 of 2011 or

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 finance leasing company registered in terms of paragraph (c) of section 3
of the Finance Leasing Act, No. 56 of 2000 where such cost is ascertained
by considering all the facts on case-by-case basis and as confirmed by the
Central Bank of Sri Lanka. Deduction is restricted to one third of the
approved amount as confirmed by the Central Bank of Sri Lanka.
 Expenditure incurred by any person
- in the production of a film at a cost not less than five million rupees
- in the construction and equipping of a new cinema at a cost of not
exceeding twenty-five million rupees
- in the upgrading of a cinema at a cost of not exceeding ten million
Rupees
The deduction of this expenditure is restricted one third of the taxable income.

V. Cage 70 – Estimated Reliefs

Enter Estimated Reliefs that you are entitled for the year of assessment (subject
to following restrictions).

 Personal Relief
Resident individuals or citizen individuals are entitled to a personal relief of Rs.
1,200,000 for each year of assessment. However, this relief does not apply to an
individual in his capacity as a trustee, receiver, executor or liquidator. The relief
may be deducted from the Assessable income of an individual except to the extent
that the Assessable income comprises gains from the realization of investment
assets.
 Rent Relief
Resident individuals are entitled to deduct 25% of the total rental income from an
investment asset for the year of assessment unless it is intended to be claimed for
any actual expenditures incurred by the taxpayer for the repair, maintenance, and
depreciation of the investment asset.
 Other Relief
Resident individuals who have acquired solar panels to fix on their premises and
connected to the national grid are entitled to deduct Rs. 600,000 for each year of
assessment, up to the total expenditure made on such solar panels or up to the amounts
paid to a bank in respect of any loan obtained to acquire such solar panels.
VI. Cage 80 – Estimated Taxable Income
Deduct total of deductions in cage 60 and 70 from Estimated Assessable
income in cage 50 to get at the Estimated Taxable Income.

VII. Cage 90 – Estimated Tax Liability

Estimated tax liability should be computed by applying the different income
tax rates. Accordingly, fill the Part II of the SET first and enter the value
in cage 90.10 to the cage 90.

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 The following income tax rates are applicable on following persons.

a) Individuals

Standard rates

Taxable Income Tax on Taxable Income Tax rate on the excess

Range (Rs) equal to the lowest of the taxable income over the
range lowest of the range
First 500,000 30,000 6%
Next 500,000 60,000 12 %
Next 500,000 90,000 18 %
Next 500,000 120,000 24 %
Next 500,000 150,000 30 %
Balance - 36 %

Special Rates
- on gains and profits from manufacture and sale or import and sale
of any liquor or tobacco products - 40%
- on gains and profits from conducting betting and gaming - 40%

b) Companies

(i.) On gains and profits from conducting betting and gaming - 40%
(ii.) On gains and profits from manufacture and sale or import and sale of
any liquor or tobacco products - 40%
(iii.) On remainder of the taxable income of a company including gains from
the realization of investment assets - 30%

c) Partnership
Taxable income (Rs.) Tax payable
Exceeding 1,000,000 6%

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 d) Charitable Institutions - 14%
e) Trusts – 30%
f) Unit Trust or Mutual Funds – 30%
g) NGO - 30%
h) Employees Trust Fund, Employees Provident Fund, and approved
Gratuity Fund, Pension Fund and Termination Fund -14%

VIII. Cage 100 - Estimated Foreign Tax Credit

 Enter any Foreign Tax Credit, if any, in Cage 100. A Foreign Tax
Credit is limited to the amount of tax on such part of profits or
income to which foreign tax credit relates.


IX. Cage 110 – Estimated Advance Personal Income Tax

An employee whose employment income is subject to APIT shall enter the
estimated APIT for the year of assessment in Cage 110.

X. Cage 120 – Estimated Tax Payable

Deduct foreign tax credit declared in cage 100 and Estimated APIT declared
in 110 from Estimated Tax Liability in cage 90 to arrive into the Estimated
Tax Payable. Specify that value in cage 120

XI. Cage 130 – Exempted/Excluded Income (Local & Foreign)

Enter any exempted or excluded income from Local source or foreign source

2.2 PART – III – DECLARATION

Taxpayer or the taxpayer’s duly authorized agent, should sign the SET declaring
that the SET does not contain any incorrect, false or misleading information.

3. CALCULATION OF INCOME TAX QUARTERLY INSTALMENT PAYMENTS

3.1 The quarterly instalment payment is calculated by using the following formula.

Quarterly Instalment A - C
Payment (E) =
B

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 Where,

A Estimated Tax Payable (Amount declared in Cage 120)

B Number of instalments remaining including the current instalment*

C Tax payments made prior to this instalment **

Gain derived or expected to be derived from the realization of an investment asset during
a year of assessment shall not be considered for the purpose of quarterly installment.

* Number of instalments remaining including the current instalment - B

Instalment 1st 2nd 3rd 4th
“B” 4 3 2 1

** Tax payments made prior to that instalment – (C)

Following payments are considered as payments for above C;

a) Previous instalment payments, and
b) any withholding tax (WHT) payments including Advanced Income Tax (AIT)
paid /withheld prior to the due date of the payment of the current instalment
payment.

3.2 Calculation of Net Quarterly Instalment payment

Deduct advance payments of Quarterly Instalment Payment and other relevant
Credits from the Quarterly Instalment Payment to arrive into Net Quarterly
Instalment Payment.

NET QUARTERLY INSTALLMENT PAYMENT =E-F

Where,

E Quarterly Instalment Payment

F Advance payments/ other tax credits

Following payments are considered under (F).

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 1. Any advance instalment payment for the relevant quarter
2. Share of the instalment paid by the Partnership (for partners of a
partnership).

4. PENAL PROVISIONS APPLICABLE ON SET AND INSTALMENT PAYMENTS

4.1 Penal Provisions for late filing and non-submission of the SET and submission
of incorrect or misleading SET.

I A person who fails to submit the SET as instructed by the Commissioner General
of Inland Revenue may subject to pay a penalty up to one million rupees under
Section 185 of the IR Act.
II Where tax is underpaid, as a result of an incorrect SET and material omission in
the SET, penalty will be imposed under section 180 of the IR Act in the amount of-
(a) 25% of the underpayment, if (b) does not apply;
or
(b) 75 % of the underpayment, if the amount of the underpayment is-
- higher than ten million rupees or
- higher than the 25% of the person’s tax liability for the period.

III The SET form considered as a statement to a tax official and accordingly, penalty
will be imposed under section 181 of the IR Act on a false or misleading
statement. The penalty will be the amount equal to Rs. 50,000/- or the amount
understated whichever is higher due to the false or misleading statement.

IV A person who willfully makes a false or misleading SET shall be liable on

conviction to a fine up to one million rupees or to imprisonment for a term up to
one year or to both such fine and imprisonment under section 190 of IR Act.

4.2 Penal provision for nonpayment /late payment of instalment payments and
evading of instalment payments.

I. Penalty for nonpayment /late payment - (Under Section 179 (2) of the IR
Act)
A person who fails to pay all or part of an instalment required under this Act,
within 14 days of the due date for the instalment shall be liable to a penalty
equal to 10% of the amount of tax due but not paid.

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 II. Fine and imprisonment - (Under Section 189 of the IR Act)
A person who willfully evades making instalment payments shall be liable on
conviction to a fine up to ten million rupees or to imprisonment for a term up
to two years or to both such fine and imprisonment under section 189 of IR
Act.

III. Interest on under payment (Under Section 159 (1) of the IR Act).
In the event of an instalment or part thereof not paid on due date, 1.5% interest
per month or part of a month shall be charged on such default instalment or
part of the instalment.

5. ILLUSTRATIONS

Example 01:
Mr. Kulathunga is a Chief Financial Controller (CFO) of the company “NAPTA”. His
expected income for the year of assessment 2024/2025 is as follows;

 Employment income Rs. 15,000,000 (Rs. 1,250,000×12)

 Gross Interest income received on 01.05.2024 Rs. 2,000,000 (AIT has been
deducted at the rate of 5% - )
 Business income Rs. 2,500,000

He has donated Rs. 750,000 to purchase equipment for the National Kidney Fund during the
year of assessment. In addition, Mr. Kulathunga has installed a solar panel to his residential
place which is connected to national grid at cost of Rs. 1,350,000.
In addition to the above he expected to earn Rs. 3,000,000 from his foreign consultancy
income which channeled to be remit Sri Lanka through his Foreign currency account at
People’s Bank.

Calculation of Estimated Tax Payable

Rs.
Employment Income 15,000,000
Interest Income 2,000,000
Business Income 2,500,000
Estimated Assessable Income 19,500,000
Less - Reliefs

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  Personal Relief (1,200,000)

 Solar Panel (600,000)

Less – Qualifying payments

 Donations to the Kidney Fund (750,000)

Estimated Taxable Income 16,950,000

Estimated Tax Liability 500,000 x 6% = 30,000

500,000 x 12% = 60,000
500,000 x 18% = 90,000
500,000 x 24% = 120,000
500,000 x 30% = 150,000
14,450,000 x 36% = 5,202,000 5,652,000
Total Tax Liability 5,652,000
Deduct – APIT (4,518,000)
Estimated Tax Payable (A) 1,134,000

**Calculation of estimated APIT

Employment Income per month – Primary 1,250,000
(1,250,000 at 36%) (15,000,000 /12)
Less
As per APIT Table 01 (73,500)
APIT deductible per month (450,000-73,500) 376,500
APIT deducted per annum (376,500 x 12 ) 4,518,000

Calculation of Quarterly Instalment Payable

Quarterly Instalment Payment (E) = A-C
B
= 1,134,000 – 100,000
4
st
1 Instalment payable = Rs. 258,500

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Example 2
Ms. Krishanthi, Lecturer, Faculty of social science is attached to the University of Rajarata,
Sri Lanka. Meanwhile, she provides service to the Faculty of Graduate Studies also and
receives a payment. Her expected income for the year of assessment 2024/2025 is as follows;
 Employment income from the University of Rajarata (primary employment) is Rs.
5,400,000
 Employment income from the Faculty of Graduate Studies (secondary
employment) is Rs. 2,500,000. Since the monthly income from the primary
employment is over the range 322,000 applicable tax rate is 36% )
 Gross Interest income received on 01.05.2024 Rs, 4,000,000 (deduction of AIT at
rate 5% amounting to Rs. 200,000)
Employment income includes estimated cash and non-cash benefits. The professor has spent
Rs. 1,350,000 during the month of December 2024 to acquire solar panels to fix on her
premises and connected to the national grid. She has donated Rs. 750,000 to the General
Hospital to purchase the medicine & equipment.

Calculation of Estimated Tax Payable

Rs.
Employment Income (primary + (5,400,000 + 2,500,000) 7,900,000
secondary)
Investment Income

 Interest Income 4,000,000

Estimated Assessable Income 11,900,000

Less – Reliefs

 Donation to General Hospital (750,000)

Personal Relief (1,200,000)

Less – Qualifying payments

 Expenditure on solar panels (600,000) 2,550,000

Estimated Taxable Income (ETI) 9,350,000

Gross Estimated Tax Liability 500,000 x 6% = 30,000

500,000 x 12% = 60,000
500,000 x 18% = 90,000
500,000 x 24% = 120,000

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 500,000 x 30% = 150,000

6,850,000 x 36% = 2,466,000 2,916,000

Less: Estimated APIT ** (1,962,000)
Estimated Tax Liability (A) 954,000

**Calculation of Estimated APIT (Deductible by the Employer)

Description Monthly Estimated Deducted

Income Taxable amount
Income of Tax
(ETI)

Primary employment (5,400,000/12) 450,000 (450,000 x 36%)

Income - 73,500
As per the APIT 450,000 = 88,500
Guideline and Table 01
APIT deduct per Month 88,500

APIT deduct per 88,500 x 12 1,062,000

Annum

Secondary employment 208,333 208,333 208,333 x 36% = 75,000

income 75,000
APIT deducted per 75,000 x 12 = 900,000
Annum from Secondary 900,000
employment As per
payee table 07
Total APIT Deduction 1,962,000

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Calculation of Quarterly Instalment Payable
Quarterly Instalment Payment (E) = A-C
B
= 954,000 – 200,000
4
st
1 Instalment payable = 754,000 =
Rs. 188,500
4

Example 03:
Dr. Akram is a Orthopedic surgeon peradeniya Teaching Hospital. Also, he is engaged in
private practice at private hospital as a consultant. His expected income for the year of
assessment 2024/2025 is as follows;
 Employment income is Rs. 9,600,000
 Business (Professional) income is Rs. 40,000,000 from his own medical centre.
 Gross Interest income received on 01.07.2024 amounting to Rs, 6,000,000 (AIT
has been deduct at the rate of 5%. amounting to Rs. 300,000)
 Rent income is Rs. 8,000,000
Employment income includes estimated cash and non-cash benefits. Also he expected to
donate Rs. 300,000 to an approved charity. Tax payment made prior to first instalments is
Rs. 1,250,000

Calculation of Estimated Tax Payable

Rs.
Employment Income 9,600,000
Business Income 40,000,000
Investment Income

 Interest Income 6,000,000

 Rent Income 8,000,000

Estimated Assessable Income 63,600,000

Less - Reliefs

 Rent Relief 8,000,000*25% (2,000,000)

 Personal Relief (1,200,000)

Less – Qualifying payments

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  Donation to approved (75,000)
charity (Deductible
subject to 1/3rd of the
Taxable Income or Rs.
75,000 whichever is
less
Estimated Taxable Income 60,325,000

Gross Estimated Tax Liability 500,000 x 6% = 30,000

500,000 x 12% = 60,000
500,000 x 18% = 90,000
500,000 x 24% = 120,000
500,000 x 30% = 150,000

57,825,000 x 36% = 20,817,000 21,267,000

Less: Estimated APIT ** (2,574,000)
Estimated Tax Payable (A) 18,693,000

**Calculation of estimated APIT

Employment Income per month – Primary 288,000

(800,000 at 36%) (9,600,000 /12)
Less
As per APIT Table 01 73,500
APIT deductible per month (288,000-73,500) 214,500
APIT deducted per annum (214,500 x 12 ) 2,574,000

Calculation of Quarterly Instalment Payments

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

(Rs.) (Rs.) (Rs.) (Rs.)
A 18,693,000 18,693,000 18,693,000 18,693,000

B 4 3 2 1

C 300,000 4,898,250 9,496,500 14,094,750

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 Quarterly
Instalment
4,598,250 4,598,250 4,598,250 4,598,250
payment
(E)

Deductions
- - - -
(F)

Final
Quarterly
payment 4,598,250 4,598,250 4,598,250 4,598,250
(E- F)

Example 4:

Mr. Nalaka is engaged in the business of manufacturing of Kitchen items. His expected
income for the year of assessment 2024/2025 is as follows;
 Business income (after deducting allowable expenses) Rs. 25,000,000
 Gross Interest income received at the end of Second Quarter Rs. 5,000,000 (AIT
has been deducted at the rate of 5% on 01.08.2024 Accordingly, dedeucted (AIT)
on interest = 250,000)
He made an advance payment of Rs. 900,000 for 1st instalment on 15th June 2024.

Calculation of Estimated Tax Payable

Rs.
Business Income 25,000,000
Investment Income

 Interest Income 5,000,000

Estimated Assessable Income 30,000,000

Less - Reliefs

 Personal Relief (1,200,000)

Estimated Taxable Income 28,800,000

Estimated Tax Payable 500,000 x 6% = 30,000

500,000 x 12% = 60,000
500,000 x 18% = 90,000

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 500,000 x 24% = 120,000
500,000 x 30% = 150,000

26,300,000 x 36% = 9,918,000

9,468,000

Calculation of quarterly instalment payable

Quarterly Instalment Payment (E) = A-C
B
= 9,918,000 – 250,000 (AIT)
4
= 2,417,000

Payable 1st Instalment = E-F

= E – Advance payment
= 2,417,000 – 900,000
st
Net 1 Instalment Payable = Rs 1,517,000

Example 5
Hiruni and Waruni are partners of HW Enterprises, sharing partnership profits on equal basis.
The partnership is engaged in the business of manufacturing steel products. During the year
of assessment 2024/2025 estimated gains and profits of the partnership is as follows.
 Business income (after deducting allowable expenses) Rs. 54,000,000
 Gross Interest Income received on 15.06.2024 Rs. 7,500,000. (AIT has been
deducted at 5% on 15.07.2024 Rs. 7,500,000 x 5% = 375,000)
 Rent Income - Rs. 3,300,000 per annum (Assumed WHT/AIT has not been
deducted due to payment delay)
Partnership wishes to donate Rs. 500,000 for an approved charity.

Calculation of Estimated Tax Payable of the Partnership

Rs.
Business Income 54,000,000
Investment Income

 Interest Income 7,500,000

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  Rent Income 3,300,000

Estimated Assessable Income 64,800,000

Less – Qualifying Payments

 Donations to approved charity

(1/5th of the Taxable Income or
Rs. 500,000 of the donations
made whichever is less (500,000)

Estimated Taxable Income 64,300,000

Estimated Tax Payable 1,000,000 x 0% = 0

63,300,000 x 6% = 3,798,000 3,798,000
Estimate Tax Payable (A) 3,798,000

Calculation of quarterly instalments payable by the Partnership

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

(Rs.) (Rs.) (Rs.) (Rs.)
A 3,798,000 3,798,000 3,798,000 3,798,000
B 4 3 2 1

1,230,750 2,086,500 2,942,250

C 375,000
(855,750+375,000) (1,230,750+855,750) (2,086,500+855,750)

Quarterly
Instalment 855,750 855,750 855,750 855,750
payment(E)
Deductions(F) - - - -
Final Quarterly
payment (E- F) 855,750 855,750 855,750 855,750

Hiruni’s PIT tax

427,875 427,875 427,875 427,875
credit (50%)
Waruni’s PIT
427,875 427,875 427,875 427,875
tax credit (50%)

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* Cumulative AIT deducted by the withholding agent prior to the date of each instalment,
can be included to C.

Note:
Partnerships shall allocate the share of partnership tax to the partners. Subject to the payment
of Partnership Income Tax, partners are entitled to deduct share of partnership tax as a credit.
(Include such amount to “F” in the given formula).

However, any excess share of partnership tax is not entitled to a refund but allowed to be
carried forward to the next year of assessment. Partners are entitled to deduct such excess
amount against the future instalment payable (include such amount to “F” in the given
formula).

Estimated distribution of share of income, qualifying payments and Tax credits (Rs.)

Hiruni Waruni
(Partner 1) (Partner 2)

Share of Business Income 27,000,000 27,000,000

Share of Investment Income

 Interest Income 3,750,000 3,750,000

 Rent Income 1,650,000 1,650,000

Share of Qualifying Payment on Donations to 250,000 250,000

approved charity
Share of AIT on interest 187,500 187,500
Share of Partnership Income Tax (amount of tax credit 1,711,500 1,711,500
would be paid prior to instalment due date)

Calculation of Mrs. Hiruni’s estimated tax payable

Mrs. Hiruni received Rs 2,000,000 as an Gross interest income on 01.07.2024 (AIT has been
to deducted at 5%) She has donated Rs. 300,000 for approved charity and also she has paid
the housing loan interest and Rs. 350,000 and Rs. 275,000 for education & health of the
children’s during the year.

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 Rs.
Business Income 27,000,000
Investment Income

 Interest Income (3,750,000+2,000,000) 5,750,000

 Rent Income 1,650,000

Estimated Assessable Income 34,400,000

Less – Reliefs

 Personal Relief (1,200,000)

Less – Qualifying Payments

 Donation to approved (75,000)

charity (Deductible subject
to 1/3rd of the Taxable
Income or Rs. 75,000 of the
donation made whichever is
less

Estimated Taxable Income 33,125,000

Estimated Tax Payable 500,000 x 6% = 30,000

500,000 x 12% = 60,000
500,000 x 18% = 90,000
500,000 x 24% = 120,000
500,000 x 30% = 150,000

30,625,000 x 36% = 11,025,000 11,475,000

Estimated Tax Payable (A) 11,475,000

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Calculation of Quarterly Instalments Payments

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

(Rs.) (Rs.) (Rs.) (Rs.)
A 11,475,000 11,475,000 11,475,000 11,475,000
B 4 3 2 1

3,084,375
5,881,250 8,678,125
C 287,500 (287,500+2,796,8
(3,084,375+2,796,875)
75) (5,881,250+2,796,875)

Quarterly Instalment
2,796,875 2,796,875 2,796,875 2,796,875
payment(E)
Deductions(F)

Share of partnership
income tax 427,875 427,875 427,875 427,875

Carried forward for

future instalment tax - - - -
payable
Net Quarterly
2,369,000 2,369,000 2,369,000 2,369,000
payment (E- F)

For further details please contact;

1. 1944 – Inland Revenue Call Centre
2. 011-2134250 – Senior Commissioner – Clearance & Direction Unit
3. 011-2134205 - Commissioner – Consultation & Promotion Unit
4. 011-2134204 - Commissioner– Clearance & Direction Unit
5. Commissioners of all Regional & Metro Units

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