Use this for a year that isn’t just a payslip: you sold land, a house or shares, or you’re working out tax on rent and fixed deposit interest, on their own or alongside salary. It also handles foreign-currency consulting profit at the 15% cap; for the full 15% rule and worked examples, see the freelancer tax calculator.
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Sri Lanka Capital Gains, Rent and Interest (AIT) Tax Calculator
For years that don't fit in a payslip: a property sale, rent and FDs — combined the way the IRD combines them, with your deadlines laid out.
What happened in your year?
Tap everything that applies — then we’ll go through them one short step at a time.
Step 1
💼 Your salary
Your employer cuts APIT monthly — we check whether it was enough. Salary gets no expense deductions.
💻 Consulting — local clients
Enter gross fees — your costs come off in the deductions step.
💱 Consulting — foreign clients
Enter gross fees. Foreign currency into your Sri Lankan bank → profit capped at 15%.
💸 Costs of earning your consulting income
Deductible to their work-use share — there’s no official formula, so pick an honest split.
🖥️ Equipment bought for work spread over 5 years — 20% a year
🏠 Rent you collect
Taxed after costs — a standard 25% allowance, or your actual repairs.
🏦 FD & savings interest
Interest counts as income; the bank’s 10% is an advance you get credit for.
Bank usually keeps 10% = —
🏘️ Sold an asset (land, house, unlisted shares)
Separate tax: due within 30 days after the end of the month you sold it. Gains under Rs. 50,000 are exempt.
The rate for individuals rose from 10% to 15% on 3 June 2026.
Owned since before April 2018? Use its market value at 30 September 2017 as the cost.
Your own home (3 years owned, lived in 2) and Colombo Stock Exchange shares are usually outside this tax.
Your result
Rs. —
- Income for the year—
- Your deductions—
- Tax-free allowance—
- Tax for the year—
- Already paid for you—
💸 Your deductions saved you
—
🏘️ Capital gains — separate tax
- Your gain—
- Tax to pay on it—
⏱️ Due within 30 days after the end of the month of sale, with its own return.
What you should do
Estimates for a resident individual, Y/A 2025/26 rules (Inland Revenue Act No. 24 of 2017 as amended in 2025). Work-use percentages are reasonable splits, not official formulas; equipment is depreciated straight-line over 5 years. This is guidance, not tax advice — confirm with a Chartered Accountant or tax practitioner before paying or filing.
Want this filed, not just calculated? LankanTax Desktop prepares your full return — and your data never leaves your computer.
See LankanTax DesktopIn short
Model complex Sri Lankan tax situations for 2025/26: multiple income sources, freelancer deductions, the 15% remitted-FX cap, rent cost options, and AIT credits — with a full band-by-band breakdown of the result.
Which calculator do you need?
Capital gains, rent and interest rates at a glance
| Item | Rate | Notes |
|---|---|---|
| Capital gains, individuals, sale up to 2 June 2026 | 10% | On the gain (sale price minus cost) |
| Capital gains, individuals, sale from 3 June 2026 | 15% | Inland Revenue (Amendment) Act No. 11 of 2026 |
| Capital gains exemption | Gains ≤ Rs 50,000 exempt | Only if total annual gains ≤ Rs 600,000 |
| Rent standard deduction | 25% | Or actual repair costs if higher |
| AIT on bank/FD interest | 10% | Credit against final bill; nil if self-declared and income < Rs 1.8m |
Who this calculator is for
The simple income tax calculator answers most people’s question in a minute. This one is for property sellers, landlords, and anyone with FD or savings interest to declare — you sold a block of land in July, you rent out a house, or your fixed deposits paid a lot of interest this year. Each of those has different rules, and some have different deadlines. Freelancers and consultants with foreign clients should use the freelancer tax calculator instead, which covers the 15% FX rule and freelancer deductions in full.
What you can deduct against rent, and what you can’t
| Cost | Deductible? | How |
|---|---|---|
| Repairs, maintenance and depreciation on a rented property | Yes | Automatic 25% standard deduction, or your actual repair costs if higher — not both |
| The cost of an asset you’re selling | Yes, as cost base | Original purchase price plus qualifying improvements; assets owned before 1 April 2018 use market value at 30 September 2017 instead |
| Entertainment, private spending, fines | No | Expressly disallowed |
| Cash payments of Rs. 500,000+ | No | Disallowed unless paid through the banking system |
Inland Revenue Act No. 24 of 2017: s.11 (deduction), s.10 (disallowed items, incl. domestic expenses and large cash payments); Fifth Schedule para 2(c) (25% rent relief).
Sold land, a house, or unlisted shares? Read this first
Individuals pay 10% on the gain for sales up to 2 June 2026, and 15% for sales from 3 June 2026 onward, under the Inland Revenue (Amendment) Act No. 11 of 2026. A gain of Rs 50,000 or less is exempt where your total gains for the year do not exceed Rs 600,000. For assets you owned before 1 April 2018, the cost is treated as the market value on 30 September 2017. The return and payment are due within 30 days after the end of the month of sale.
Rent and FD interest, added to your year
Rent is taxed at the normal bands after a standard 25% deduction for repairs, maintenance and depreciation, or your actual repair costs if higher. FD and savings interest is part of your assessable income too, taxed at the normal bands after your Rs 1.8 million relief; the bank’s 10% AIT is a credit against that bill, not a final tax. If your total annual income is under Rs 1.8 million, sign your bank’s self-declaration to receive interest gross.
Why quarterly payments still matter
Rent, interest and gains usually have no employer withholding, so if tax is still owing after your credits you pay it in instalments. Full dates and a worked example are on the freelancer tax calculator.
Check the numbers before you act
Work-use percentages are honest estimates, not official formulas; capital-gains exemptions turn on your specific facts; and deductions only survive an IRD query with receipts behind them. These are suggestions — confirm everything with a Chartered Accountant or tax practitioner before paying or filing.
Evidence for the gains, rent and interest rules
- Deductions and disallowed items: Inland Revenue Act (consolidated), ss.10–11
- Rates, relief, 15% FX ceiling, interest AIT: IRD Notice PN/IT/2025-01
- Capital gains: separate taxation of investment-asset gains at 10% before 3 June 2026 and 15% for individuals from that date (Inland Revenue (Amendment) Act No. 11 of 2026), 30-day return (IRA s.93(3)) and the 30.09.2017 deemed-cost rule for assets owned before 1 April 2018.
- Instalments and deadlines: IRD Tax Calendar (IRA ss.90, 93)
Complex years
Capital gains, rent and interest questions
How much tax do I pay when I sell land in Sri Lanka?
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10% of the gain for sales up to 2 June 2026, 15% from 3 June 2026. The gain is the sale price minus what the asset cost you, and a gain of Rs 50,000 or less is exempt where your total gains for the year do not exceed Rs 600,000.
What happens if I sold before or after 3 June 2026?
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Sales completed on or before 2 June 2026 use the 10% rate. Sales from 3 June 2026 onward use 15%, under the Inland Revenue (Amendment) Act No. 11 of 2026. The date of sale, not the date you file, decides the rate.
How is rental income taxed in Sri Lanka?
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Rent is taxed at the normal 6% to 36% bands after a standard 25% deduction for repairs, maintenance and depreciation, or your actual repair costs if you can document more.
Do I pay tax on my fixed deposit interest?
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Yes. FD and savings interest counts as assessable income, taxed at the normal bands after your Rs 1.8 million relief. The bank's 10% AIT is a credit, not a final tax.
What cost do I use for an asset I bought before April 2018?
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For assets owned before 1 April 2018, use the market value on 30 September 2017 as the cost, not what you originally paid.
Can I avoid AIT on my FD interest?
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If your total income for the year is under Rs 1.8 million, sign your bank's self-declaration form and the bank pays the interest gross, without deducting AIT.
Deductions only count if the return is filed right.
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