Indian Railway is the world’s largest human transport system which is currently dealing with a lot of problems, such as availability of confirming seats to waiting list passengers and in terms of overbooking. Moreover, there is no such system/regulation in Indian railway that instantly gives accommodation to waiting list passengers during their journey. This paper proposes the Dynamic Seat Allocation Algorithm that we have developed to find seating arrangements in a brimming train despite a waiting ticket. Considering there can be numerous possible seating arrangements, most ideal seating arrangement needs to be abstracted. To do so, we need a single numerical value, variation number (VaNo). It is defined to analyze the cost of the ticket and is used to find the level of comfortability during the journey. VaNo is also used to find seating arrangements for groups.