DA Arrears Calculator — Dearness Allowance Arrears & Tax Relief
Calculate your DA arrears from the latest revision (58% to 60%, effective January 2026). Get the total arrears amount, estimate Section 89(1) tax relief with Form 10E, and view the complete DA revision history with projections for the next revision.
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How to Use This Calculator
DA Arrears tab
Enter your monthly basic pay (from your 7th CPC pay slip), the old DA rate (before revision), and the new DA rate (after revision). The calculator computes your monthly DA increase, the number of arrears months between the effective date and payment month, and your total arrears amount. Use "More options" to adjust the effective date and payment month for any past or future revision.
Section 89(1) Relief tab
If your DA arrears push you into a higher tax bracket, Section 89(1) provides relief. Enter the arrears amount (auto-filled from the DA Arrears tab), your total income in the year of receipt (including arrears), and your total income in the original year (to which arrears relate). The calculator shows a step-by-step computation of your tax relief and whether you need to file Form 10E.
DA History & Projection tab
View the complete DA revision history from January 2020 to the present, including the COVID freeze period. See typical arrears generated at each revision for a sample basic pay, projected DA for July 2026, and the 8th Pay Commission timeline.
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The Formula
DA arrears are the difference between new and old DA amounts for the months between the effective date and the payment date:
DA Arrears = (New DA% − Old DA%) × Basic Pay × Number of Arrear Months
Where:
New DA% = DA rate after the latest revision
Old DA% = DA rate before the revision
Basic Pay = Monthly basic pay under 7th CPC
Arrear Months = Months from effective date to payment month
Section 89(1) Relief:
Step 1: Tax on total income WITH arrears (receipt year) = A
Step 2: Tax on total income WITHOUT arrears (receipt year) = B
Step 3: X = A − B (extra tax due to arrears in receipt year)
Step 4: Tax on income WITH arrears (original year) = C
Step 5: Tax on income WITHOUT arrears (original year) = D
Step 6: Y = C − D (tax on arrears in original year)
Step 7: Relief = X − Y (if positive, else no relief)
DA Rate Determination (by Labour Bureau):
DA% = [(Average AICPI for past 12 months − 261.42) / 261.42] × 100
Where AICPI = All India Consumer Price Index for Industrial Workers (Base 2016 = 100)
DA is revised twice a year — effective 1 January (announced ~March) and 1 July (announced ~September). The gap between the effective date and the announcement date generates arrears.
Example
Priya — Section Officer (Level 10), posted in Delhi
Priya is a central government Section Officer at Pay Level 10, basic pay ₹56,100. The DA was revised from 58% to 60% effective 1 January 2026, and the order was issued in March 2026. She wants to know her arrears and tax relief.
Step 1: DA arrears calculation
Step 2: Going forward
Step 3: Section 89(1) relief (if applicable)
Priya's DA arrears of ₹2,244 are relatively small. For larger arrears (e.g., from the July 2021 restoration when DA jumped from 17% to 31%), Section 89(1) relief becomes significant. At ₹56,100 basic pay, the July 2021 restoration generated arrears of approximately ₹7,854/month × 3 months = ₹23,562.