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Questions & Answers

Spouse's share of Fixed Deposit interest for Income Tax declaration

Question: How to fill Income Tax Return Declaration form ?

1. Declared income is the individual income and not of individual and the wife.

2. In case of income from Joint Fixed (with wife) Deposits in banks. Is it the half share of interest that should be

declared as the income of the individual.

K. N. G. Dharmasiri, Dehiwela.

Answer: 1. In filling your Income Tax return you have to declare only your individual income and you do not have to declare your wife's income.

If your wife has any income from Fixed Deposit the chances are that she will receive separate income tax forms if her annual interest income is more than Rs. 300,000. This source of information to the Tax Department being from the Bank's Withholding Tax returns.

2. Usually 50 per cent of the interest income can be claimed as taxable income for each one, your wife and yourself. Is the annual interest more than Rs. 300,000 and did you make a declaration to the bank stating whether you and your wife are liable or not liable for withholding tax. Is the bank deducting WHT, if so is it on total interest. If at the time of opening the FD account if you have instructed the bank on percentage share of interest for each one of you. That percentage share will apply for declaration. In the absence it will be 50 per cent for each.

Granting of anomalies and fixing of pension from 1.1.2006

Question: My pension was previously paid at Galle and transferred to Panadura in 2005. (Rs. 6,472.42 plus allowances 1,397.24 total: 7,869.66). After a number of letters were addressed direct by me to the Director of Pensions, it was fixed at 9,875.72 by those at the Divisional Secretariat, Panadura. Once again changed without reference to read as Rs. 9,420.97 plus COL 1,437.50.

History of service - Government service 11.7.1945 after RN service, as temporary clerk. In January 1946 placed on monthly salary. The Government made various adjustments from Provident Fund to be eligible for pensions and W&OP subsequently placed on Clerical Service Gr. III on a new salary scale and continued till retirement, drawing Rs. 6,600 p.a.

Request: (I am aware, two instances of increase, one on Sir John

Kotelawela period an additional increment of Rs. 6, next by P. M. D. B. Wijetunge period). Beyond above the PM Premadasa and Kumaratunga granted salary increased to Public Officers. But such were not applicable to pensioners. Hence, kindly recommend to Director Pensions and Divisional Secretary, Panadura, to rectify their error.

Finally, kindly send a set of circulars pertaining to Clerical Service in English medium so that we could check before asking for amendments.

C. V. Rupasinghe, Panadura.

Answer: Your question lacks clarity. You say that after a number of letters were addressed direct to Director of Pensions. It was fixed at Rs. 9,875.72 by the Panadura Divisional Secretariat. At this stage were you receiving COL in addition to Rs. 9,875.72 the chances are not. You say once again without any reference it was changed to Rs. 9,420.97 plus COL. Rs. 1,437.50, the total becomes Rs. 10,858.47 which is more than your previous pension of Rs. 9,875.71. We understand that in 2006, there was a circular to pay the pension and COL. In the process some allowance included in the pension may have been deducted in view of the payment of a separate COL. We suggest that you call over at the Panadura Divisional Secretariat where your file is and clarify with them.

Overseas travel and passport handling

Question: I am an octogenarian and had a chance of visiting the USA and back by air. I had to present my passport at 12 points and finally I had to hand over the passport to the baggage counter at the Katunayake Airport for mishandled baggage. Such is the importance of this document the safety of which is not over-emphasised anywhere. For the information of the air travelling public could you please enlighten us as to the situation when after possible misplacement you are unable to produce your passport at arrival. Ticket counter baggage counter etc. and also the ensuing situation and solution.

Dr. N. G. D. Karandana, Napawala, Getahetta.

Answer: We are surprised to note that your passport had to be presented at 12 points at the Katunayake Airport. Usually, it has to be presented at the Immigration Counter and the customs check point. Also if there is mishandled or lost baggage, you have to present it at the baggage complaint counter. If you purchase duty free items at the airport you have to present at the shop also. Presenting at 12 points is unusual but may be for security checks by the airport authority.

At which ever point you present your passport the onus is on you to stand there and collect it. If it gets lost after immigration, all the details will be available on the computer. If before you may face serious trouble. The procedure is to report to the police post at the airport. The loss of your passport. You can also check back at all the counters where you presented it. It is always advisable to carry a photocopy of your passport. The simple answer in for travellers to be extra careful with the passports.

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Send in your questions

"The organisation of Professional Associations of Sri Lanka (OPA) will cover questions in all professions and subjects of common interest to the public in the "Daily News OPA at Your Service" page every Thursday. Please make your question brief. Questions can be directed to the OPA on e-mail: [email protected] or [email protected], [email protected] Fax:2559770 or write to the Professional Centre, 275/75, Prof. Stanley Wijesundera Mawatha, off Bauddhaloka Mawatha, Colombo 7."