Salary arrear calculator with income tax relief
This salary arrear calculator works out back pay month by month when a pay revision, promotion or DA increase is paid late. Enter each period with the pay you should have received and the pay you actually got; it lists every month, totals the arrears and splits them by financial year — the split you need for tax. A helper turns old and new basic pay, DA and HRA (or a fitment factor) into monthly amounts.
Arrears are taxed in the year you receive them, which can push you into a higher slab. The second part is an arrear calculator for income tax: it applies each year’s slabs to show the relief under section 157(1) of the Income-tax Act 2025 (claimed on Form 39, which replaced Form 10E from tax year 2026-27) or section 89(1) of the 1961 Act (Form 10E) for arrears received earlier.
How to use the Salary Arrear Calculator
- Under Arrears periods, enter the first and last month and the monthly amounts due and paid. Add a period whenever the rates change.
- Optional: open the helper, enter old and new basic pay (or a fitment factor), DA and HRA, and put the result into the last period.
- Read the total, the split by financial year and the month-wise table; download the CSV if you need it.
- For tax relief, choose the year you received the arrears, your taxable income that year without them and your regime.
- For each earlier year listed, enter the taxable income from that year’s return and the regime, then read the relief.
Salary Arrear Calculator features
Month-wise and by year
Every month of arrears with its financial year, and totals for each year.
Several periods
Separate periods for each DA rate or pay change; overlapping months are caught.
Pay revision helper
Old and new basic, DA, HRA and an optional fitment factor give the monthly due and paid amounts.
Relief with each year’s slabs
New and old regime tables from 2019-20 to 2026-27, with rebate, surcharge and 4% cess.
Form 39 or Form 10E
Names the right form for the year you received the arrears.
How arrears and the relief are calculated
Arrears = Σ (salary due − salary paid) for each month. A ₹5,000-a-month revision from January 2025 paid with April 2026 salary gives 15 × ₹5,000 = ₹75,000: ₹15,000 belonging to 2024-25 and ₹60,000 to 2025-26.
Relief follows the Form 39 / Form 10E table: (A) tax on this year’s income with the arrears minus tax without them, less (B) the extra tax each earlier year would have had if its share had been paid on time. In the example (new regime throughout) the arrears add ₹11,700 of tax in 2026-27 on ₹14 lakh, but would have added only ₹1,560 in 2024-25 and nothing in 2025-26, because ₹10.6 lakh was covered by the rebate. Relief = 11,700 − 1,560 = ₹10,140.
If B is larger than A, there is no relief and you should not file the form for those arrears.
Slab tables used
Surcharge is 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore and 37% above ₹5 crore (capped at 25% in the new regime from 2023-24), with marginal relief; cess is 4%.
| Year (FY) | New regime slabs | Rebate |
|---|---|---|
| 2020-21 to 2022-23 | 0 / 5 / 10 / 15 / 20 / 25 / 30% in ₹2.5 lakh steps to ₹15 lakh | ₹12,500 up to ₹5 lakh |
| 2023-24 | ₹3L / 6L / 9L / 12L / 15L | ₹25,000 up to ₹7 lakh, with marginal relief |
| 2024-25 | ₹3L / 7L / 10L / 12L / 15L | ₹25,000 up to ₹7 lakh, with marginal relief |
| 2025-26 and 2026-27 | ₹4L / 8L / 12L / 16L / 20L / 24L | ₹60,000 up to ₹12 lakh, with marginal relief |
| Old regime, all years | ₹2.5L / 5L / 10L (₹3L for 60–79, ₹5L for 80+) | ₹12,500 up to ₹5 lakh |
8th Pay Commission and DA arrears
When this page was checked, no 8th Pay Commission pay matrix or fitment factor had been notified, so any fitment factor you type is an assumption. For DA arrears on a central rate change, the DA calculator has the dated DA history; for full pay under the current matrix, use the 7th Pay Commission salary calculator, and for your total tax the income tax calculator.
Salary Arrear Calculator FAQ
How do I calculate salary arrears?
For each month, subtract what you were paid from what you should have been paid, and add up the months. The salary arrear calculator lists each month and totals them by financial year.
Is tax relief available on salary arrears?
Yes. If arrears push you into a higher slab, section 157(1) of the 2025 Act (formerly 89(1)) lets you claim relief by filing Form 39 (Form 10E for arrears received up to 2025-26) online, before your return or through your employer.
Is relief under 89(1) available in the new tax regime?
Yes — the relief is available whichever regime you are in; the calculator uses the regime you chose for each year.
Which income should I enter for earlier years?
The taxable (total) income after deductions shown in that year’s return or Form 16, without these arrears.
What fitment factor should I use for the 8th Pay Commission?
None has been notified yet. Type a figure only to see what it would mean, and replace it when the official pay matrix is out.
Is this tax advice?
No. It is an estimate; the e-filing portal’s Form 39 / 10E computation and your employer’s pay bill are final.