CHATURANGA PRADEEP SAMARAWICKRAMA 
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Colombo, December 31 (Daily Mirror) - Cabinet Spokesman and Minister Dr. Nalinda Jayathissa today assured that no withholding tax will be charged on interest from children’s savings accounts if the child’s monthly income is less than Rs. 150,000.
He made these comments in response to a journalist's question regarding the 10% withholding tax on interest from savings accounts of children under 18 years of age.
The Minister clarified that the tax will only be applied to children’s accounts with a monthly income exceeding Rs. 150,000 and only if the interest amount is included in that income.
He further said that efforts are being made to minimise the challenges in recovering money from the Inland Revenue Department.
“A system is being developed for this purpose, and the tax will not be implemented immediately but from April 1 of next year. Discussions are ongoing at the Finance Ministry to simplify the process for refunding withholding tax to the public,” the Minister explained.
He added that discussions with the banking system are also underway to facilitate these activities, ensuring that the public can easily manage them through banks in the future.
