A Step-by-Step Guide for Employees, Freelancers & Small Businesses

Filing your income tax in Sri Lanka doesn’t have to be stressful — whether you’re an employee in Colombo, a freelancer in Kandy, or a small business owner. The Inland Revenue Department (IRD) has now streamlined most of the process with e-filing. In this guide, we’ll show you how to file your income tax for the 2024/2025 assessment year in a simple, step-by-step format.

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✅ Who Needs to File Income Tax in Sri Lanka?

You must file if you fall into one of these categories:

• You earn above LKR 1.2 million annually (LKR 100,000/month).
• You are self-employed or a freelancer.
• You run a business or provide professional services.
• You receive rental income, dividends, or foreign income.

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🛠️ What You’ll Need Before Filing

To start, prepare the following:

• TIN (Taxpayer Identification Number) – If you don’t have one, register at ird.gov.lk.
• Form B or Form C – For self-employed and businesses.
• Payslips or annual income statement (employees).
• Bank statements (for rental, interest, foreign income).
• EPF/ETF contribution proof (if applicable).
• Access to IRD’s e-Services Portal.

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📥 Step-by-Step Guide to File Tax in 2024/2025

🔹 Step 1: Register with the IRD

Go to ird.gov.lk and register for a TIN if you don’t have one. Employees usually get it through their employer.

🔹 Step 2: Log in to the IRD e-Services Portal

Use your TIN and password to log in. The portal is mobile-friendly and open 24/7.

🔹 Step 3: Choose the Correct Tax Form

• Form B for individuals/self-employed.
• Form C for companies and partnerships.
• PAYE Form if you’re salaried and claiming refunds.

🔹 Step 4: Fill in Your Income Details

Include:

• Salary
• Business income
• Rental income
• Capital gains
• Foreign income (if any)

🔹 Step 5: Claim Deductions & Reliefs

• LKR 1.2 million tax-free threshold
• Approved donations
• Medical insurance
• Rent paid (if applicable)

Use TaxCalculator.lk to estimate your tax liability and apply correct reliefs.

🔹 Step 6: Submit & Pay

• Review your form carefully.
• Submit online.
• Pay using a bank, credit card, or online payment option provided.

🔹 Step 7: Keep Your Acknowledgement

Download and save your acknowledgement receipt for future reference or audits.

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💬 FAQs

Q: Can I file income tax myself?

✅ Yes! With IRD’s e-filing and tools like TaxCalculator.lk, it’s simple to file without an accountant.

Q: What’s the deadline?

📆 The usual filing deadline is November 30, but always check the latest update from IRD.

Q: What happens if I don’t file?

⛔ Penalties may apply, and interest will accrue on unpaid tax. It’s best to file early and avoid surprises.

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🧾 Want Help Filing Your Tax Return?

We offer affordable, personalized tax filing support for:

• Salaried professionals
• Freelancers
• Small business owners

👉 Contact us now or use our free Sri Lanka tax calculator to get started!

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📈 Why Use TaxCalculator.lk?

• ✅ Localized for Sri Lanka tax system
• ✅ Updated for 2024/2025 changes
• ✅ Built by finance professionals

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