Under Indian Income Tax Act. Allowances which are non-taxable for the individual assesse are:

A. Sumptuary allowances.

B. Compensatory allowance paid to judges.

C. Overtime allowance.

D. Allowance paid to Govt, employees posted abroad

E. Non- practicing allowance.

Choose the most appropriate answer from the options given below:

Correct option is C

Under the Indian Income Tax Act, certain allowances are considered non-taxable for individual assesses. These include: Sumptuary allowances: Sumptuary allowances are allowances provided for meeting specific expenses related to the maintenance and well-being of the individual, such as expenses for official entertainment or hospitality. These allowances are non-taxable. Compensatory allowance paid to judges: Compensatory allowances paid to judges are provided to compensate for specific expenses related to their duties or office. These allowances are non-taxable. Allowances paid to government employees posted abroad: Allowances paid to government employees who are posted abroad are typically designed to cover additional costs or hardships associated with the foreign posting. These allowances are non-taxable.