44A. Retirement annuity contract for professionals.-

(1)   Where an assessee, being an individual who is resident in Pakistan, derives income from the exercise of a profession as an accountant, actuary, lawyer, architect, medical or veterinary physician or surgeon, or from such other professions as may be notified by the Central Board of Revenue for the purpose of this section, either independently or as a partner in a registered firm carrying on such profession, and has paid, out of his income from such profession in any income year, any amount in that year as a premium under an annuity contract scheme, approved by the Central Board of Revenue, having for its main object the provision to the assessee of a life annuity in old age, he shall, subject to the provisions of sub-sections (2), (3), (4) and (5), be allowed an allowance in respect of the said amount in that year.

(2)   The amount of the allowance under sub-section (1) shall not exceed five per cent of the income from such profession or ten thousand rupees, whichever is the less.

(3)   No assessee shall be entitled to the allowance under sub-section (1) if he is entitled, on his retirement, to a pension or other benefits.

(4)   No allowance shall be made under sub-section (1) in respect of a contract which provides-

(a)    for the payment during the life of the assessee of any sums besides the sums payable as annuity;

(b)    for the annuity payable to the assessee to commence before he attains the age of sixty or after he attains the age of seventy;

(c)    that the annuity shall be capable, in whole or in part, of surrender, commutation or assignment; or

(d)    for payment of the annuity outside Pakistan.

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