Form 34: Report for deduction of additional employee cost under section 146
Source checked 21 October 2026 · Original author: Finin2min Editorial Desk
Purpose, person and period
Report for deduction of additional employee cost under section 146.
The assessee obtains an accountant report on eligible additional employee cost under section 146; the report has distinct new-business and existing-business computations.
Period gate: This numbered form belongs to the Income-tax Rules, 2026, effective 1 April 2026. The predecessor 10DA is a concordance, not permission to change an earlier-year filing into a new-law form. For earlier periods, use the applicable 1961 Act form and saved procedure.
Controlling rule and source pages
Rule 68; Section 146, Section 515(3), Section 146(3). Physical PDF pp 396-397; printed Gazette pp 1928-1929.
Rule 68 — connected rule text
68. Furnishing of report under section 146. – Report of an accountant as defined in section 515(3)(b), which is required to be furnished by the assessee under section 146(3)(c) along with the return of income shall be in Form No. 34.
Completed field illustration
Fictional data, not for filing. A fictional existing business reports ten eligible additional employees; eligibility conditions are assumed and identified.
| Form field / block | Completed fictional entry |
|---|---|
| Assessee / PAN / business | Example Manufacturing Ltd / synthetic ZZZCE0000Z / pump manufacturing |
| Tax year | 2026-27 |
| Row 3: new business branch | Not applicable: existing business selected |
| Row 4(i): employees at preceding year-end | 100 |
| Row 4(ii): employees employed during the year | 110; ten new hires, no departures assumed |
| Row 4(iii)(a): eligible additional employees hired this year | 10, each assumed to meet the statutory employee/emolument/day-count and payment conditions |
| Row 4(iii)(b): qualifying preceding-year hires | 0 |
| Row 4(iv)(a)/(b)/(c): eligible emoluments | Rs 24,00,000 / nil / Rs 24,00,000 |
| Row 4(v)(a): 30% current amount | Rs 7,20,000 |
| Row 4(v)(b)/(c): earlier-year deductions | Nil / nil |
| Row 4(vi): total deduction in model | Rs 7,20,000 |
| Accountant verification | Model role, NOT SIGNED; no membership/UDIN fabricated |
This illustrates the named fields, not every possible schedule. Use the complete official extract for additional applicable fields, annexures and verification. “Not signed” means no professional certification or authority action has occurred.
Reconcile the example
- 110 − 100 = 10 additional employees in assumed headcount.
- 30% × 24,00,000 = 7,20,000.
- 7,20,000 + 0 + 0 = 7,20,000.
A headcount increase alone is insufficient. Verify section 146(5) definitions, employment duration, emoluments, recognised provident-fund and prescribed payment conditions before using the report.
Prepare, furnish and retain
- Use the form identity and period above, then determine the person who prepares, issues or verifies it from Rule 68. An authority-issued order is not an applicant filing.
- Collect the records that support the actual fields in the example; keep any mandatory schedules and annexures specified in the complete source form.
- Reconcile dates, amounts, units and identifiers to the underlying records. Preserve the applicable rule version and any later correcting notification.
- Where the rule prescribes electronic furnishing, use the current official utility/schema and authorised verification. A local PDF does not produce a portal acknowledgement.
- Retain the submitted version, supporting schedules and actual acknowledgement or issued certificate/order, as applicable. This fictional model supplies none of those evidential outcomes.
Download the correct documents
Official Form 34 source extract Filled sample — fictional field illustration
The official extract preserves source pages; later amendments are supplied with affected forms. Read the April corrigendum where its printed-page corrections apply. The filled field illustration is an educational model and cannot be filed.
Primary sources
Questions readers ask
Does this sample prove approval, filing or a professional conclusion?
No. It completes the named fields using synthetic facts. It has no real signature, DSC, approval or acknowledgement.
Can I use the legacy form number for a current tax-year obligation?
Establish the governing period first. A predecessor number is a cross-reference; earlier-year procedures and current-year forms must be kept distinct.