DA Arrears: Month-wise method & template

Calculate month-wise Dearness Allowance arrears for Central Government employees and Dearness Relief arrears for pensioners — with Section 89 tax relief, full DA history, and step-by-step method.

60%DA/DR Jan 2026
+2%Hike from 58%
3 MonthsTypical Arrears
Sec. 89Tax Relief Tool

DA Arrears Calculator – Month-wise Breakdown

Select tab: Employee DA Arrears · Pensioner DR Arrears · Section 89 Tax Relief

👔 Employee DA Arrears
👴 Pensioner DR Arrears
🧾 Section 89 Tax Relief

DA Arrears Formula
DA Arrears = Basic Pay × (New DA% − Old DA%) × Pending Months
Applied on Basic Pay only — not on HRA, TA, or any other allowance.
Basic Pay (₹/month)

Enter your Basic Pay as shown in your salary slip. Do NOT include DA, HRA, TA, or any other component.
Old DA Rate (%) — Before Hike
58% — Jul 2025 to Dec 202555% — Jan 2025 to Jun 202553% — Jul 2024 to Dec 202450% — Jan 2024 to Jun 202446% — Jul 2023 to Dec 202342% — Jan 2023 to Jun 202338% — Jul 2022 to Dec 202234% — Jan 2022 to Jun 202231% — Jul 2021 to Dec 202128% — Jan 2021 to Jun 202117% — (COVID Freeze 2020)
New DA Rate (%) — After Hike
60% — Jan 2026 (Current)58% — Jul 202555% — Jan 202553% — Jul 202450% — Jan 202446% — Jul 202342% — Jan 202338% — Jul 202234% — Jan 202231% — Jul 2021
Arrears Effective From Month
JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
Arrears Effective From Year
2026202520242023
Arrears Paid / To Be Paid In Month
JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
Arrears Paid / To Be Paid In Year
202620252024
Include TPTA Increase on DA Arrears?
No — Standard TA (no DA component)Yes — TA linked to DA (some grades, DA on TA)
For most 7th CPC employees, TA is a fixed amount and not linked to DA. Select “Yes” only if your TA has a DA component (rare, pre-7th CPC legacy cases).

⚡ Generate Month-wise DA Arrears
↺ Reset

📊 Month-wise DA Arrears Breakdown
Basic Pay—
DA Increase—
Monthly Arrear—
Pending Months—

💰 Total DA Arrears Payable
—
—
📈 New Monthly DA going forward
—
⚠️
DA arrears are fully taxable in the year of receipt. If large arrears push you into a higher tax bracket, consider claiming Section 89(1) Tax Relief. Use the Section 89 Tax Relief tab above for exact savings. Calculate now →


DR Arrears Formula (Pensioners)
DR Arrears = Basic Pension × (New DR% − Old DR%) × Pending Months
DR is NOT calculated on Fixed Medical Allowance (FMA ₹1,000/month). Use basic pension only.
Basic Pension (₹/month)

As per your PPO (Pension Payment Order). Minimum ₹9,000/month under 7th CPC. Do NOT include FMA, commuted amount, or HRA.
Old DR Rate (%) — Before Hike
58% — Jul 2025 to Dec 202555% — Jan 2025 to Jun 202553% — Jul 2024 to Dec 202450% — Jan 2024 to Jun 202446% — Jul 2023 to Dec 202342% — Jan 2023 to Jun 202338% — Jul 2022 to Dec 202234% — Jan 2022 to Jun 2022
New DR Rate (%) — After Hike
60% — Jan 2026 (Current)58% — Jul 202555% — Jan 202553% — Jul 202450% — Jan 202446% — Jul 202342% — Jan 2023
DR Effective From Month
JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
DR Effective From Year
202620252024
Arrears Paid In Month
JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
Arrears Paid In Year
202620252024
Commuted Pension Reduction (₹/month) — if applicable

DR arrears are calculated on the reduced basic pension (i.e., after subtracting commuted portion). Enter 0 if commutation already restored (after 15 years) or not availed.
Additional Pension for Age 80+ (₹/month) — if applicable

DR is also admissible on additional pension for aged pensioners. If applicable, enter amount here. Example: 80–84 yrs → 20% of basic pension.
⚡ Generate Month-wise DR Arrears
↺ Reset

📊 Month-wise DR Arrears (Pensioner)
Basic Pension—
DR Increase—
Monthly Arrear—
Pending Months—

💰 Total DR Arrears (Pensioner)
—
—
📈 New Monthly DR going forward
—
⚠️
DR arrears are fully taxable. However, FMA of ₹1,000/month is not subject to DR — so no DR arrears on FMA portion. Pensioners can claim Standard Deduction of ₹50,000 u/s 16 on pension income. Large arrears → use Section 89 Relief tab.


Section 89(1) Income Tax Act — Relief Formula
Tax Relief = Tax on (Salary + Arrears) − Tax on (Salary alone) − Spread Tax
Section 89(1) ensures you are not taxed at a higher rate just because arrears were received in a lump sum in one year.
Annual Gross Salary (₹) — Current Year (excluding arrears)

Gross annual salary for current FY (April–March) excluding DA arrears lump sum.
DA Arrears Received (₹) — Lump Sum

Total arrears received as lump sum in this financial year. Use the Employee/Pensioner tab above to calculate this.
Number of Years Over Which Arrear Relates
1 Year (e.g. 3–12 months of same year)2 Years (e.g. arrears span across 2 FYs)3 Years4 Years
Tax Regime
New Regime (FY 2025-26)Old Regime (with deductions)
Investments / Deductions u/s 80C etc. (₹/year) — Old Regime Only

Enter total of 80C (PPF/ELSS/LIC), 80D (health), 80CCD(1B) etc. Enter 0 for new regime.
Standard Deduction (₹)

₹75,000 for new regime (FY 25-26) | ₹50,000 for old regime (salaried). Auto-filled.
🧾 Calculate Section 89 Tax Relief
↺ Reset

🧾 Section 89(1) Tax Relief Calculation
Tax Without Sec 89—
Spread Tax (with Sec 89)—
Tax Saved (Relief)—
Net Tax Payable—

💰 Section 89 Tax Relief — You Save
—
—

DA Arrears — Complete Guide

Step-by-step method, DA rate history, common errors, and tax rules for 2026

🧮 How to Calculate DA Arrears (Step-by-Step)

1

Identify the DA Hike: Find the official DoPT/DoPPW circular. Note the effective date (1 Jan or 1 Jul), old DA%, and new DA%. For Jan 2026: Old = 58%, New = 60%, Effective = 1 Jan 2026.

2

Calculate DA Difference: New DA% − Old DA%. For Jan 2026: 60% − 58% = 2%. This is the percentage increase applied to Basic Pay each month.

3

Monthly Arrear per Month: Basic Pay × DA Difference%. Example: ₹56,100 × 2% = ₹1,122/month. For pensioner with ₹40,000 basic pension: ₹40,000 × 2% = ₹800/month.

4

Count Pending Months: Count from the effective date to the month of announcement. Jan 2026 hike announced in late March 2026 → 3 months (January, February, March). Payment of arrears is included in the March 2026 salary.

5

Total Arrears = Monthly Arrear × Pending Months. Example: ₹1,122 × 3 = ₹3,366 for a Level-10 employee. This is paid as a lump sum along with the salary in the announcement month.

6

Verify on Salary Slip / Pension Slip: Check for a separate line “DA Arrears” or “DR Arrears” in your salary/pension credit. If not received, check PFMS portal or contact your PAO / pension disbursing bank within 45 days.

DA Arrears Formula:

Total Arrears = Basic Pay × (New DA% − Old DA%) / 100 × Months

Example (₹56,100 basic, 2% hike, 3 months):
= 56100 × (60 − 58) / 100 × 3
= 56100 × 0.02 × 3
= ₹3,366

📊 DA / DR Rate History — 7th CPC (2016–2026)

All Dearness Allowance revisions since 7th Pay Commission implementation. Applicable to both employees (DA) and pensioners (DR) at identical rates.

⚠️ Common Errors in DA Arrears Calculation — and Fixes

❌ WRONG

Using Gross Pay for DA

Many people mistakenly apply the DA% to their gross salary (Basic + HRA + TA + DA). DA arrears are only on Basic Pay. Using gross salary inflates your calculation by 50–80%.

✅ CORRECT

Use Basic Pay Only

DA Arrears = Basic Pay × DA Difference% × Months. For a Level-10 employee with ₹56,100 basic and ₹60,000 total salary, use ₹56,100 — not ₹60,000.

❌ WRONG

Including FMA in Pensioner DR

Pensioners sometimes apply DR to their total pension including FMA (₹1,000/month). DR is NOT admissible on FMA. Only basic pension and additional pension (age 80+) attract DR.

✅ CORRECT

Exclude FMA from DR Base

DR Base = Basic Pension (+ additional pension if age 80+). FMA of ₹1,000/month remains flat. Example: ₹40,000 basic pension + ₹1,000 FMA → DR is on ₹40,000 only.

❌ WRONG

Wrong Month Count

People often count from the announcement month and miss the effective month itself. If DA is effective from 1 Jan and announced in 28 March, arrears are for 3 months (Jan, Feb, Mar) — not 2.

✅ CORRECT

Include the Effective Month

Count from the effective month (inclusive) to the announcement/payment month (inclusive). Jan 2026 effective + March 2026 announcement = 3 months. Use the calculator above for accuracy.

❌ WRONG

DR on Commuted Pension

Some pensioners calculate DR on full basic pension even when commutation is in effect. DR is on the residual pension (basic minus commuted portion) until commutation is restored after 15 years.

✅ CORRECT

DR on Residual Pension Only

If basic pension is ₹45,000 and commuted portion reduces it by ₹8,000/month, DR is on ₹37,000 only until 15-year restoration. After restoration, DR applies on full ₹45,000.

❌ WRONG

Thinking DA Arrears Are Tax-Free

DA and DR arrears are 100% taxable in the year of receipt. They form part of salary/pension income. Many employees do not declare arrears in ITR, leading to tax notices.

✅ CORRECT

Declare + Claim Section 89 Relief

Always declare DA arrears in ITR under “Salary Income.” Then claim Section 89(1) relief if arrears push you into a higher bracket. Use Form 10E (file online before ITR) for Sec 89 claim.

🧾 Section 89(1) — DA Arrears Tax Relief Explained

When DA arrears are paid in a lump sum, the entire amount is taxed in the year of receipt. This could push you into a higher slab temporarily. Section 89(1) of the Income Tax Act provides relief by allowing you to spread the tax impact across the years to which the arrears belong.

1

Are You Eligible? Section 89 relief applies when: (a) salary arrears or advance are received, (b) the extra income causes higher tax compared to if it had been received in the respective year(s), and (c) you file Form 10E online before filing your ITR.

2

File Form 10E Online: Log in at incometax.gov.in → e-File → Income Tax Forms → Form 10E. Fill details of arrears, years, and amounts. Submit before filing ITR to avoid disallowance.

3

Claim in ITR: In ITR-1 or ITR-2, under “Tax Relief u/s 89,” enter the relief amount computed in Form 10E. This reduces your net tax payable for the year. No additional proof submission required — Form 10E is sufficient.

4

When Is Relief Maximum? Relief is highest when: (a) large arrears push you from 20% to 30% slab, (b) arrears span 2+ financial years, (c) you are in old tax regime with significant deductions. In new regime, slab differences are smaller but relief is still applicable.

🔗 Official Resources

DoPT

dopt.gov.in

DA circulars for Central Government employees. Official source for all DA revision orders.

DoPPW

doppw.gov.in

DR orders for pensioners and family pensioners. Pension rules and 7th CPC orders.

PFMS

pfms.nic.in

Track salary and DA arrear payments. Verify credit status directly from government payment system.

Pensioners Portal

pensionersportal.gov.in

Pension slips, DR calculator, grievance filing. Also has official DR calculator for all CPCs.

AICPI-IW

Labour Bureau India

Monthly AICPI-IW index values used for computing DA/DR. Base year 2001=100 (7th CPC).

Income Tax

incometax.gov.in

File Form 10E for Section 89(1) relief. Must be filed online before submitting ITR.

✅ DA Arrears Verification Checklist

Before calculating arrears, confirm the effective month, old DA/DR rate, new DA/DR rate and the Basic Pay or Basic Pension applicable to each month. If Basic Pay changed because of increment or promotion during the arrears period, split the calculation into separate month ranges rather than using one figure for the entire period.

For employees, compare Basic Pay first and exclude HRA, TA and other allowances unless a specific rule makes a component DA-linked. For pensioners, verify the DR base carefully and keep FMA separate. The DA Calculator for Pensioners is useful when you want to verify the pension-side percentage independently.

After calculating the month-wise differences, compare the total with the salary or pension statement in the payment month. If there is a mismatch, check the number of pending months and whether any month used a different Basic Pay. This is usually more effective than changing the DA percentage itself.

For a longer historical period, use the DA Arrears Month-Wise tool and the DA Rate Chart together so each month uses the correct rate and pay base.

📘 Employee DA Arrears Example

Suppose an employee has a Basic Pay of ₹56,100 and the DA rate rises from 58% to 60%. The difference is 2%, so the monthly arrear is ₹56,100 × 2% = ₹1,122. If three months are pending, the estimated arrears become ₹3,366 before tax. This simple example is useful for checking whether the month-wise table is behaving as expected.

If the employee receives an annual increment during the arrears period, do not use ₹56,100 for every month. Calculate the months before increment at the old Basic Pay and the remaining months at the new Basic Pay. The month-wise method is designed for exactly this situation and gives a more accurate result than multiplying one monthly difference by the total number of months.

👴 Pensioner DR Arrears Example

For a pensioner, the same percentage difference applies to the eligible pension base instead of salary Basic Pay. If Basic Pension is ₹40,000 and DR rises by 2%, the monthly DR difference is ₹800. Over three pending months, the estimated DR arrears are ₹2,400 before considering any special pension elements.

Additional pension for age-based entitlement should be handled separately where applicable, while Fixed Medical Allowance should not be included in the DR base on this page. If the pension amount has been revised, verify the current pension first with the Revised Pension Calculator before calculating arrears.

🧾 Tax Treatment of DA/DR Arrears

DA and DR arrears are generally received as a lump sum even though they relate to earlier months. This can increase taxable income in the year of receipt. The Section 89 tab on this page is intended to estimate whether spreading the arrears across the relevant period changes the tax burden.

Keep the salary or pension amount excluding arrears separate from the arrears amount when using the tax-relief tab. Also verify the tax regime and standard deduction assumptions. The tax result is a planning estimate, so compare it with payroll records or tax computation before filing.

Frequently Asked Questions

DA and DR arrears — your common queries answered with accurate details

What is the DA arrear amount for January 2026 hike?▾
The DA/DR was hiked from 58% to 60% w.e.f. 1 January 2026 — a 2% increase. Arrears are for January, February, and March 2026 (3 months). The monthly arrear = Basic Pay × 2%. Examples: ₹18,000 basic → ₹360/month × 3 = ₹1,080 total arrear; ₹44,900 basic → ₹898 × 3 = ₹2,694; ₹56,100 basic → ₹1,122 × 3 = ₹3,366; ₹1,44,200 basic → ₹2,884 × 3 = ₹8,652. For pensioners, replace “basic pay” with “basic pension.”
When will DA arrears for Jan 2026 be credited?▾
The DA hike from 58% to 60% for January 2026 was confirmed by the Cabinet in early 2026. Arrears for January and February 2026 are typically paid along with the March 2026 salary/pension. Central Government employees should see a separate “DA Arrears” entry in their March 2026 salary slip. Pensioners should see the DR arrears credited with their March pension. If not received by end of April 2026, contact the Pay & Accounts Office or pension disbursing bank. File on pgportal.gov.in if needed.
Are DA arrears applicable on HRA, TA, and other allowances too?▾
DA itself is calculated only on Basic Pay — so DA arrears are on Basic Pay only. However, since HRA is a percentage of Basic Pay (27%/18%/9%), and since TA is a fixed amount (not linked to DA under 7th CPC), there is typically no separate HRA arrear or TA arrear. But if your HRA was underpaid or revised separately, that forms a separate arrear. Under 7th CPC, Transport Allowance is fully fixed (₹3,600 or ₹7,200/month based on grade and city) and does not attract DA component — so no TA arrears from DA revision.
What happens to DA arrears if an employee retires or dies during the arrear period?▾
If an employee retires during the arrear period (e.g., retired in February 2026 while Jan 2026 DA arrear is pending), they are still entitled to arrears for the months they were in service. The DA arrear from January 2026 to February 2026 (retirement month) is paid along with retirement dues or along with the announcement payment. If the employee passes away during the arrear period, the pending DA arrears become part of the estate and are paid to the legal heir/nominee along with other death-in-service benefits and family pension. The legal heir must apply to the PAO with death certificate and legal heir certificate.
Do I need to file Form 10E before claiming Section 89 DA arrear relief?▾
Yes — Form 10E must be filed online before submitting your ITR. This is mandatory. If you claim Section 89 relief in ITR without first filing Form 10E on the Income Tax portal (incometax.gov.in), the relief will be disallowed by the IT department and a demand notice will be raised. Form 10E contains a detailed schedule (Annexure I for salary arrears) where you fill the year-wise breakup of arrears. Once submitted, Form 10E generates an acknowledgement — mention this in your ITR. For small DA arrears (e.g., under ₹5,000–₹10,000 total), the tax difference is usually negligible, so Sec 89 may not be required.
Will DA stop when the 8th Pay Commission is implemented? What about arrears?▾
When the 8th CPC is implemented (expected from 1 January 2026, though official rollout may take time), the accumulated DA is merged into the revised basic pay using the fitment factor. DA resets to 0%. This happened at every CPC — in 2016 (7th CPC), the 125% DA under 6th CPC was merged. For arrears: any pending DA arrears accrued before 8th CPC implementation date will still be paid at the old 7th CPC rates. Going forward, fresh DA revision cycle begins at 0% on the new basic pay. Current DA/DR hikes continue until 8th CPC is officially notified — there will be no gap in payments.
Can I calculate DA arrears if my basic pay was revised (increment/promotion) during the arrear period?▾
Yes, but you need to calculate separately for each basic pay. If you received an annual increment on 1 July 2025 (say basic went from ₹52,000 to ₹53,560), and the Jan 2026 DA hike of 2% covers January–March 2026, simply apply: ₹53,560 × 2% × 3 months = ₹3,213.60 arrears — using the current higher basic pay for all 3 months (since the increment predates the arrear period). If the promotion happened mid-arrear period (e.g., promoted on 1 February 2026 with new basic ₹67,700), calculate: January at old basic + February–March at new basic, then total the two figures.