Individual Tax Return
Our dedicated team of tax professionals is here to assist you every step of the way, ensuring compliance with tax laws and regulations while maximizing your tax benefits.Individuals who earn income through various sources, such as employment, investments, or self-employment, are required to submit their individual income tax return,
Salaried Employees
Self-Employed Individuals
Investors
Individuals with Other Income
The Process for Individual Tax Return Submission Typically Follows These Steps
Gather Income Documents
Collect all relevant income documents for the tax year, such as salary statements (Payslips), interest statements from banks, rental income statements, dividend statements, and any other sources of income.
Determine Eligibility
Determine if you are required to file a tax return based on your income level and any other criteria set by the Inland Revenue Department (IRD) of Sri Lanka.
Complete Tax Return Form
Obtain the appropriate tax return form from the IRD website or their offices. Complete the form accurately, providing details of your income, deductions, exemptions, and any tax credits you are eligible for.
Calculate Tax Liability
Calculate your total tax liability based on the income tax rates applicable for the tax year. Ensure you consider any deductions, exemptions, or tax reliefs that may apply to reduce your taxable income.
Submit Tax Return
Once the tax return form is completed, submit it to the IRD by the specified deadline. In Sri Lanka, tax returns are typically filed electronically through the IRD’s online portal or physically submitted at IRD offices.
Pay Any Taxes Owed
If you owe taxes after calculating your tax liability, ensure timely payment to the IRD. Payment options may include electronic funds transfer, bank deposit, or payment at designated bank branches.
Receive Acknowledgment
After submitting your tax return, you should receive an acknowledgment or confirmation from the IRD. This may be in the form of an acknowledgment receipt or an acknowledgment email if filed electronically.
Follow Up
If there are any discrepancies or issues with your tax return, the IRD may request additional information or clarification. Respond promptly to any communication from the IRD to avoid penalties or fines.
Our Services Include
Tax Consultation
Schedule a consultation with our tax experts to discuss your individual tax situation and any concerns you may have.
Income Tax Preparation
We meticulously prepare your individual income tax return, taking into account all eligible deductions and credits to minimize your tax liability.
Tax Return Filing
Our team handles the filing process on your behalf, ensuring that your tax return is submitted accurately and on time to the relevant tax authorities.
Tax Planning Strategies
We provide personalized tax planning strategies to help you optimize your tax situation for future years and achieve your financial goals.
Frequently Asked Questions
What documents are required for filing an individual income tax return?
The documents required may vary depending on individual circumstances, but common documents include salary statements, bank statements, investment statements, property rental income records, and receipts for deductible expenses.
When is the deadline for filing an individual income tax return in Sri Lanka?
The deadline for filing individual income tax returns in Sri Lanka typically falls on Nov 30th of each year for the previous tax year. However, it’s advisable to check with the tax authorities for any updates or extensions to the deadline.
Can I file my income tax return online?
Yes, the Sri Lankan tax authorities provide an online platform for individuals to file their income tax returns electronically. This e-filing system offers convenience and efficiency in the tax filing process.
What are the consequences of failing to file an income tax return?
Failing to file an income tax return or filing late may result in penalties and interest charges imposed by the tax authorities. It’s essential to meet the filing deadline and ensure compliance with tax regulations to avoid any financial repercussions.
How can Accounting Buddy assist me with filing my individual income tax return?
- Accounting Buddy offers professional tax filing services to individuals, ensuring accurate and timely submission of income tax returns. Our experienced tax experts handle all aspects of the filing process, including document preparation, compliance checks, and submission, providing peace of mind and minimizing the risk of errors.