Salary Arrears Calculator
Calculate your retroactive salary arrears for DA hikes, backdated promotions, or 7th CPC pay revisions. Get a month-wise itemized statement, NPS deductions, and Section 89(1) Form 10E relief estimates.
Salary arrears equal the monthly difference between your revised pay (Basic + DA + HRA) and the amount previously drawn, multiplied by the number of backdated months, minus statutory deductions like NPS (10% of Basic+DA difference) and TDS.
Enter Arrears Period & Pay
| Month | Basic Diff | DA Diff | HRA Diff | Gross Diff | Deductions | Net Arrear |
|---|---|---|---|---|---|---|
| Jan 2026 | ₹0 | ₹1,428 | ₹952 | ₹2,380 | -₹381 | ₹1,999 |
| Feb 2026 | ₹0 | ₹1,428 | ₹952 | ₹2,380 | -₹381 | ₹1,999 |
| Mar 2026 | ₹0 | ₹1,428 | ₹952 | ₹2,380 | -₹381 | ₹1,999 |
| Total | ₹0 | ₹4,284 | ₹2,856 | ₹7,140 | -₹1,143 | ₹5,997 |
Monthly Cashflow
Arrears Breakdown
How to Claim Section 89(1) Tax Relief on Arrears (Form 10E)
Receiving a large lump-sum arrears payment in one financial year can push you into a higher income tax slab. Under Section 89(1) of the Income Tax Act, you can calculate relief by distributing the arrears back to the original financial years when they were earned.
- Calculate total tax on current year’s income including arrears.
- Calculate total tax on current year’s income excluding arrears.
- Find Difference A: (Step 1 − Step 2) = Extra tax charged this year.
- Calculate tax for the previous year(s) including arrears allocated to that year.
- Calculate tax for the previous year(s) excluding arrears.
- Find Difference B: (Step 4 − Step 5) = Tax that would have been paid in past years.
- Tax Relief Allowed = Difference A − Difference B. Deduct this amount directly from your final tax bill.
* Note: You must submit Form 10E online on the Income Tax e-Filing portal before filing your ITR to claim Section 89(1) relief.
Worked Examples: Salary & DA Arrears Calculation
Basic Pay: ₹56,100
DA revised from 50% to 53% (+3% hike)
Monthly DA Arrear = ₹56,100 × 3% = ₹1,683 / month
Total Gross Arrears for 3 Months = ₹1,683 × 3 = ₹5,049
NPS Deduction (10%) = ₹505 → Net In-Hand = ₹4,544
Old Basic: ₹44,900 (Level 7) → New Basic: ₹47,600 (Level 8)
Basic Difference = ₹2,700 / month
DA (50%) on Basic Diff = ₹1,350 / month
Monthly Gross Arrear = ₹4,050 / month
Total 6-Month Gross Arrears = ₹4,050 × 6 = ₹24,300
Frequently Asked Questions
Rohit Kushwaha
Software Engineer & Creator of mysalarycalculator.in
I’m Rohit Kushwaha, a Software Engineer with 3+ years of experience in developing web applications and digital solutions. By combining technology with practical financial tools, I built mysalarycalculator.in to help Indian professionals easily understand their salary, taxes, EPF, gratuity, and take-home income.
Ask a question or share your feedback