Govt. eases pensioners’ WHT refunds
View(s):The government is to implement a mechanism for the refund of With Holding Tax (WHT) from retirees who do not come within the income tax ambit.
The move comes amid the recent government decision to increase WHT on bank deposit interest to 10 per cent from 5 per cent as a measure to beef up revenue collection from the taxes.
While the increased rate is expected to swell state coffers, pensioners exempt from paying income tax have to go through the refund process to retrieve deductions made on their interest income.
Accordingly, at a discussion held with Finance Ministry officials, President Anura Kumara Dissanayake instructed that an efficient mechanism for the refund of WHT should be introduced without further delay. The President said that, knowing the burden retirees face, this was the need of the hour to lessen their sufferings.
Furthermore, he said that the VAT collection mechanism has to be digitised with priority for increased compliance and enhanced transparency. For improving state revenue collection, he recommended swiftly implementing a wide-ranging digital taxation system.
Pensioners from whose bank deposit interest, WHT has already been deducted, can claim the amount back.
The retirees would need to collect their bank statements and the corresponding papers as proof of WHT deduction on bank deposit interest. Banks usually provide an annual summary of such WHT deducted, which shall be the basis of their tax return application.
A case of low-income earners has been exempted by the government to ensure fairness. WHT exemptions can be claimed by those earning less than Rs. 150,000 per month through the Inland Revenue Department.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!