2025 - 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:

Mr. Ranaweera who is a resident employee of a government institution, will receive an incentive of Rs. 600,000.00 in April, 2025. His monthly regular profits and gains from employment (including noncash benefits) is Rs. 170,000.00.
(Hint: The amount of monthly earnings of Mr. Ranaweera remains unchanged for the Y/A 2025/2026)
Tax deductible on the incentive payable in April, 2025 should be computed as follows;

Computation of tax deductible on the incentive to be paid in April, 2025

Step 01 – Computation of Estimated Gross Aggregate Remunerations during the Y/A 2025/2026

  Rs.
Gross aggregate monthly remunerations already paid during the Y/A 2025/2026
(Monthly remuneration of April 2025, i.e. Rs.170,000 x 1)		 = (A): 170,000
Gross aggregate monthly remunerations payable during the Y/A 2025/2026
(Monthly remuneration payable for May, 2025 – March, 2026, i.e. Rs. 170,000 x 11)		 = (B): 1,870,000
Gross aggregate lump-sum payments already made, being made now, & payable during the Y/A 2025/2026
(Amount of incentive to be received in April, 2025, i.e. Rs. 600,000)		 = (C): 600,000
Estimated Gross Aggregate Remunerations EGAR (paid and payable) during the Y/A 2025/2026 = (D): 2,640,000

 

Therefore, tax deductible on the incentive in April, 2025 is Rs. 36,000 (As per the formula)