On 3 November 2020, in response to the Covid-19 pandemic Inland Revenue Department (IRD) of Sri Lanka has published a notice declaring penalty relief for late return submission for the assessment year 2019/2020.
Under the provisions of the Inland Revenue Act, No. 24 of 2017 (IRA) every person, who is liable for income tax shall file a return of income not later than eight months after the end of each year of assessment. Therefore, last date to furnish the Return of Income for the year of assessment 2019/2020 is November 30, 2020.
However, the prevailing Covid-19 pandemic situation of the country may cause difficulties to taxpayers and approved accountants for furnishing returns of income as per the aforesaid statutory requirement.
Taking into consideration such reasonable difficulties, taxpayers and approved accountants are informed that penalties for failure to file a return on time as provided in IRA will not be imposed, where the Return of Income for the Year of Assessment 2019/2020 is furnished on or before February 28, 2021.
