If you’re a senior citizen in Sri Lanka and have had Withholding Tax (WHT) deducted on your interest income, it’s important to know that you may be eligible for a tax refund under the latest amendments to the IRD Act effective from April 1, 2025. This guide will walk you through the online process to claim your refund quickly and hassle-free.
What is Withholding Tax on Interest for Senior Citizens?
Under the Inland Revenue Department (IRD) Act of Sri Lanka, interest income earned from bank deposits, government securities, and other fixed-income investments is subject to Withholding Tax (WHT). This means the tax is deducted at the source before you receive the interest payment.
Starting 01 April 2025, special provisions apply to senior citizens (aged 60 years and above), who are eligible for exemptions or refunds of WHT deducted on interest income, encouraging savings and financial security.
Who is Eligible for a Refund?
You may claim a refund if:
- You are a Sri Lankan resident senior citizen (60 years or older).
- WHT has been deducted on your interest income from bank deposits, treasury bills, bonds, or other financial instruments.
- Your total taxable income falls below the threshold set by the IRD.
- You have paid WHT in excess of your actual tax liability.
How to Claim Your Withholding Tax Refund Online (Step-by-Step)
Step 1: Prepare Your Documents
Make sure you have:
- Your National Identity Card (NIC) or valid identification.
- Your Tax Identification Number (TIN).
- Bank statements or certificates showing the interest income and tax deducted.
- Any previous tax return or payment evidence.
Step 2: Register or Log in to the IRD e-Services Portal
Visit the official IRD e-Services portal: https://www.ird.gov.lk/
- If you don’t have an account, register as a taxpayer by providing your NIC and TIN.
- If registered, simply log in using your credentials.
Step 3: Navigate to the Tax Refund Section
- After logging in, go to ‘Services’ > ‘Tax Refund Application’.
- Select the category: Senior Citizen Withholding Tax Refund.
Step 4: Fill Out the Refund Application Form
- Enter your personal details and tax information.
- Upload scanned copies of your bank interest certificates and WHT deduction slips.
- Specify the tax year and amount of WHT deducted.
Step 5: Submit the Application
- Review your information carefully.
- Submit the application electronically.
- You will receive an acknowledgement receipt via email or SMS.
Step 6: Track Your Refund Status
- Use the ‘Track Refund Status’ option in the portal.
- The IRD will process your claim and, if approved, the refund will be credited to your registered bank account.
Important Deadlines & Tips
- Refund claims must be submitted within 3 years from the end of the tax year in which WHT was deducted.
- Ensure all documents are accurate to avoid delays.
- Keep your contact details updated in the IRD system.
How TaxCalculator.lk Can Help You
Navigating tax refunds can be complicated, especially with recent changes in the IRD Act. At TaxCalculator.lk, we provide:
- A free senior citizen tax refund calculator to estimate your eligible refund.
- Step-by-step guides and updates on Sri Lanka tax laws.
- Access to professional consultation services to help with your tax filings.
Try our free tool now and make sure you claim every rupee you’re entitled to!
👉 Try Senior Citizen Tax Refund Calculator
Frequently Asked Questions (FAQs)
Q1: Can I claim WHT refund if I have other sources of income?
A1: Yes, but your total income will be assessed to calculate the exact tax liability.
Q2: What if I missed the deadline to claim the refund?
A2: Refund claims beyond 3 years from the tax year end may be rejected.
Q3: Is this refund process only for senior citizens?
A3: Yes, this particular exemption applies only to senior citizens as per the 2025 IRD Act amendment.
Conclusion
If you’re a senior citizen in Sri Lanka and WHT has been deducted on your interest income, don’t miss out on claiming your tax refund online. The IRD’s online system makes it easier than ever to submit your application and receive your refund safely.
For accurate calculations and guidance, visit TaxCalculator.lk today!
Leave a Reply