Financial Resolution No. 1. - Financial Resolution No. 4—Income Tax.
(1) That, where a person has ceased to hold an office or employment and a pension, annuity, or other annual payment is paid to him or to his widow or his child or any of his relatives or dependants by the person or the heirs, executors, administrators, or successors of the person under whom he held such office, or by whom he was so employed, then such pension, annuity, or other annual payment shall, notwithstanding that it is paid voluntarily or is capable of being discontinued, be deemed to be income for the purpose of assessment of income tax and shall be assessed and charged under Schedule D of the Income Tax Act, 1918, or under Schedule E of that Act, as the case may require.
(2) That to remove doubts it shall be declared and enacted that the word "annuity," and the word "pension" in the charging provision of Schedule E of the Income tax Act, 1918, shall include and be deemed always to have included respectively an annuity which is paid voluntarily or is capable of being discontinued and a pension which is so paid or is so capable.