New Delhi, June 4 -- Dearness Allowance (DA) is one of the most closely watched components of government employees' salaries and pensions, especially whenever pay hikes or inflation adjustments are discussed.

While millions of central government employees and pensioners receive DA to offset rising living costs, many taxpayers remain unsure how it is credited, taxed, and reported on their income tax returns.

Around 50 lakh central government employees and 65 lakh retired central government pensioners, including defence personnel and retirees, benefit from DA hikes ranging from 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 it is subj...