Telangana DA Hike: 2 Instalments — What You Pocket?

Telangana Cabinet approved two pending DA instalments for state employees and pensioners. One arrives around October, another near Ugadi. Arrears from earlier pending tranches still have no confirmed date — but here is what to do with extra money when it lands.

Here's what happened: Telangana Cabinet approved two previously pending Dearness Allowance instalments for state government employees and pensioners, raising their effective DA rate.. One instalment is expected to be disbursed around October and the second around the Ugadi festival period, though exact credit dates are not yet officially notified.. Pending arrears from earlier DA tranches still do not have a confirmed payment timeline, meaning some backpay could arrive in a single taxable lump sum later..

What you should do: File Form 10E on the Income Tax e-filing portal before you submit your ITR this year — this is mandatory to claim Section 89(1) tax relief on arrear salary income.. Calculate how much of the DA arrear you will receive and check whether it pushes your total income into a higher tax slab, then adjust your advance tax or TDS accordingly.. Prepay the principal on any personal loan, credit card due, or high-interest borrowing with at least 30–40% of the arrear before spending the rest — this saves more than any FD rate available today..

Section 89(1) relief lets you pay tax on arrears as if you had received the money in the original year — sometimes saving ₹5,000–₹20,000 in tax. Form 10E must be filed online first, or the relief is disallowed.