What is DA Arrear for Bihar Government Employees?
Dearness Allowance (DA) is an inflation-compensation payment made to Bihar government employees. The DA rate is revised twice yearly — effective January 1 and July 1 — based on the All India Consumer Price Index (AICPI). When Bihar announces a DA hike but implements it after the effective date, the salary difference for the intervening months is paid as DA arrear.
For example: if DA increases by 4% effective January 1, but is actually paid from March, then January and February arrear (2 months of higher DA) is credited as a lump sum in March's salary. This arrear appears as a separate line item on your HRMS Bihar payroll. To check your salary details on the portal, follow the HRMS Bihar employee dashboard complete portal guide. The Wikipedia article on Dearness Allowance explains how the AICPI formula works nationally.
DA Arrear Calculation — With Example
| Step | Formula | Example (Basic ₹40,000) |
|---|---|---|
| New DA per month | Basic × New DA% ÷ 100 | ₹40,000 × 55% = ₹22,000 |
| Old DA per month | Basic × Old DA% ÷ 100 | ₹40,000 × 51% = ₹20,400 |
| Monthly difference | New − Old | ₹22,000 − ₹20,400 = ₹1,600 |
| Total DA Arrear | Monthly diff × Arrear months | ₹1,600 × 2 months = ₹3,200 |
DA Arrear Tax Rules — Section 89(1) Relief
- DA arrear is fully taxable as salary income in the year it is received.
- To avoid paying excess tax on lump-sum arrear, claim Section 89(1) relief under Income Tax Act.
- File Form 10E on the Income Tax portal (incometax.gov.in) before you file your annual ITR.
- If you skip Form 10E, the IT department will issue a tax demand notice — this is a common mistake among government employees.
Your annual increment and DA hike often happen together, significantly boosting your gross salary. After any DA change, regenerate your HRMS Bihar salary certificate before applying for bank loans — lenders want your current income, not last year's figures. DA changes also affect NPS contributions slightly.