New Delhi, June 4 -- Dearness allowance (DA) takes centre stage during discussions over pay hikes for central government employees, public sector staff, defense personnel, bank employees and pensioners across these sectors.

DA is provided for employees and retirees only by the central government, and not the private sector. Around 50 lakh central government employees and around 65 lakh retired central government pensioners, including defence personnel and retirees benefit from DA hikes to varying amounts across 18 levels.

Today we answer top DA related FAQs for taxpayers - from whether the component is credited as part of your salary, if is subject to tax, or must be reported in your income tax returns filing, and more:

What is Dearnes...