ITO Section 27

Employee training and facilities.

— A person shall be allowed a deduction for any expenditure (other than capital expenditure) incurred in a tax year in respect of—

(a) any educational institution or hospital in Pakistan established for the benefit of the person’s employees and their dependents;

(b) any institute in Pakistan established for the training of industrial workers recognized, aided, or run by the Federal Government  [or a Provincial Government] or a  [Local Government]; or

(c) the training of any person, being a citizen of Pakistan, in connection with a scheme approved by the [Board] for the purposes of this section.