January 03, 2023, Colombo: The Ministry of Finance has decided to exempt withholding tax (WHT) from senior citizens who earn below Rs 100,000 from their bank interests, State Minister of Finance Ranjith Siyambalapitiya said.
He said the decision was taken considering the inconvenience caused to them due to the WHT. “Earlier, monthly interest income received on bank deposits was subject to the tax. However, the deduction of WHT caused hardships to people who received a monthly interest income of less than Rs100,000,” he said. Therefore, as a relief to senior citizens, the Ministry has decided not to impose the WHT on the interest income of senior citizens whose monthly bank interest income is less than Rs100,000, the State Minister said.
