2023 - Table 2

Table 2 - APIT Tax deduction for Lump-sum-payments
Gross aggregate monthly remunerations already paid during the Y/A
Gross aggregate monthly remunerations payable during the Y/A
Gross aggregate Lump-sum payments already made, being made now, & payable during the Y/A
Tax deducted previously on Lump-sum payments, if any

Ex:

Mrs. Alwis who is a resident employee of a government institution, will receive an incentive of Rs. 400,000.00 in April, 2023. Her monthly regular profits and gains from employment (including non-cash benefits) is Rs. 120,000.00.
(Hint: The amount of monthly earnings of Mrs. Alwis remains unchanged for the Y/A 2023/2024)
Tax deductible on the incentive payable in April, 2023 should be computed using the above formula.

Computation of tax deductible on the incentive to be paid in April, 2023

Step 01 –Computation of Estimated Gross Aggregate Remunerations during the Y/A 2023/2024

  Rs.
Gross aggregate monthly remunerations already paid during the Y/A 2023/2024
(Monthly remuneration of April 2023, i.e. Rs.120,000 x 1)		 = (A): 120,000
Gross aggregate monthly remunerations payable during the Y/A 2023/2024 
(Monthly remuneration payable for May, 2023 – March, 2024, i.e. Rs. 120,000 x 11)		 = (B): 1,320,000
Gross aggregate lump-sum payments already made, being made now, & payable during the
Y/A 2023/2024 (Amount of incentive to be received in April, 2023, i.e. Rs. 400,000) 		 = (C): 400,000
Estimated Gross Aggregate Remunerations EGAR (paid and payable) during the Y/A 2023/2024 = (D): 1,840,000

 

Therefore, tax deductible on the incentive in April, 2023 is Rs. 32,400 (As per the formula)