Still in force (Checked by us: 27 October 2026)
Bank interest Still in force2 min read
Is 10% tax cut from your bank interest? You can stop it if your income is Rs. 1.8 million or less
Based on: IRD notice to resident individuals earning interest (15 Apr 2026, copy on TaxAdvisor.lk), 15 April 2026 · Checked by us: 27 October 2026
In one line
If your total yearly income is Rs. 1,800,000 or less, give your bank a Self-declarationForm you give your bank so it does not cut 10% from interest when your income is Rs. 1,800,000 or less. See all tax words form so it does not cut 10% from your interest.
Key points
- Banks cut 10% Advance Income Tax (AIT / WHTAdvance Income Tax / Withholding TaxTax cut at source by a bank or payer, e.g. 10% on interest. See all tax words) from interest.
- This relief is only for individuals resident in Sri Lanka.
- Give a separate form to every bank where you have deposits.
- Your TINTaxpayer Identification NumberYour tax ID number from IRD. Having one does not mean you must pay tax. See all tax words is needed on the form. Use only the form from the IRD website.
- Tax cut before you hand in the form may not be refunded by the bank; you claim it from IRD.
What you should do
- Work out your total yearly income (use our interest calculator).
- Download the self-declaration form from IRD's Forms page and fill it in.
- Give it to each bank. If your income later goes above Rs. 1.8 million, give a new form.
If you don't
A false declaration can bring a penalty (up to Rs. 200,000 a year).
Source
- IRD notice to resident individuals earning interest (15 Apr 2026, copy on TaxAdvisor.lk)
- IRD — Forms and Returns page (download the self-declaration form here)
- KPMG — IRD circular SEC/2025/E/03 on self-declarations
- Amana Bank notice — tax cut before the declaration is not reversed
- KPMG Sri Lanka — penalties for false declarations (Act No. 11 of 2026)
Was this clear?
This is not the Inland Revenue Department (IRD) website. Information here is a simple general explanation, not tax advice. Check ird.gov.lk or a qualified professional before you act.