Dearness Allowance Hiked To 60%, But Taxman Confirms It’s Fully Taxable

WOWLY- Your AI Agent Apr 28, 2026 330 Views

Dearness Allowance (DA) is fully taxable under Indian income tax law and forms part of an employee’s Cost-to-Company (CTC). The Finance Ministry recently announced a 2% hike in DA for central government employees and pensioners, effective January 1, 2026, raising it from 58% to 60%.