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      Question

      Dearness allowance is taxable in case

      of:
      A all employees Correct Answer Incorrect Answer
      B government employees Correct Answer Incorrect Answer
      C employees of the private sector Correct Answer Incorrect Answer
      D employees of the semi-government sector Correct Answer Incorrect Answer

      Solution

      Solution:   "Normally, Dearness Allowance or DA is only paid by the Government to its employees. However, it is fully taxable for every salaried taxpayer irrespective of whether he/she is a government or non-government employee."  

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