Understanding Dearness Allowance (DA)

DA is a crucial component of salary, aimed at countering inflation's impact. It's exclusive to government and select private sector employees.

Rates are determined by Pay Commissions, varying based on location. Two types: IDA for Public Sector, VDA for Central Government.

Calculation involves indices like All India Consumer Price Index (AICPI). Fully taxable under Section 17(1) of the Income Tax Act.

Pensioners also receive DA, revised with each new salary structure.