The Income Tax Ordinance, 1979

44.  Retirement annuity contracts and trust schemes;-

(1)   Subject to such rules as may be made in this behalf, where an individual, being a resident of Pakistan, is (or would, but for the loss or profits or gains, be) chargeable to tax-

(a)    in respect of any salary or remuneration from an office or employment held by him, which is not a pensionable office or employment or which does not provide any other retirement benefits; or

(b)    in respect of profits or gains accruing or arising from any business or profession carried on by him,

       he shall, subject to the provisions of section 45, be entitled to an allowance in respect of any sum paid by him in the income year under a contract of annuity with the State Life Insurance Corporation of Pakistan or the Pakistan Post Office Life Insurance Department having for its main object the provision for him of an annuity in old age, provided such contract is approved by the Commissioner for the purposes of this section.

(2)  Nothing contained in this section shall apply to any amount in respect of which an allowance has been made under section 44A.