Well the schematic is a bit blurred but I can see you are feeding it with a split supply. Therefore there is nothing to prevent the output feeding into the arduino going negative and damaging the analogue input.
Also the schematic does not show what input on the arduino you are connecting it to.
When i put this output into the A0 of my Arduino,
Your software as posted initially is reading analogue input 1, that is marked A1 you might not be reading the correct pin.
Finally the 741 is not a very good op amp by today,s standard. It struggles to work off +/- 5V and you will not get anywhere close to rail to rail output from it.