44AA.  Retirement annuity scheme.- 

(1)  Where an individual, being a resident of Pakistan, is (or would but for the loss of profit 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 profit and gains, accruing or arising, from any business or profession carried on by him,

he shall be entitled to an allowance in respect of any sum paid by him in the income year commencing on or after the first day of July, 2001, by way of contribution or premium under a contract of annuity scheme approved by SECP of an insurance company duly registered under the Insurance Ordinance, 2000 (XXXIX of 2000), having for its main object  the provision to the assessee of an annuity in old age.

 (2)  The amount of allowance under sub-section (1) in a year shall not exceed five per cent of the income or fifty thousand rupees whichever is the less.

 (3)  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 years;

(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.