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Indian TDS Tax Withholding on Upwork Earnings

lenaellis
Community Member

Starting October 1st, Upwork will begin withholding Tax Deducted at Source, TDS, from payments to freelancers and agencies located in India as part of a new tax law enforced by the Indian government.

 

As part of our continued efforts to remain compliant with tax laws in India, we are asking that our customers in India provide their Income Tax Identification number in the “Tax Info” section under “Settings”. For purposes of TDS withholding, the Indian government will accept either a Permanent Account Number (PAN) or an Aadhaar number. Please be sure to use the correct format for your PAN or Aadhaar number as defined by the Indian government:


  • PAN is a 10-digit alphanumeric entry, i.e., A A A A A # # # # A
    # = Numeric   A = Alphabetic 
  • Aadhaar is a 12-digit numeric entry


For those freelancers and agencies that have provided a PAN or an Aadhaar number:

We are required to withhold 0.75% of all your payments, starting with the first dollar you earn as of October 1, 2020, and forward it to the Indian government. The rate is scheduled to increase to 1% on April 1, 2021.

 

For those freelancers and agencies that have not provided a PAN or an Aadhaar number:

We will be required to withhold 5% of all your Upwork earnings and forward it to the Indian government. You will be able to claim a tax credit or refund from the Indian government should you pay more taxes than required. 



You will need to add a PAN or Aadhaar number in order to keep the withholding tax at .75% of your earnings.  Click here to Add Income Tax Identification.

 

To learn more about Indian TDS, click here

 

Let us know if you have any questions.



 

492 Comments
NikolaS
Moderator

Hi Mohd,

 

We don’t plan to adjust fees. Upwork fees help to cover the costs of acquiring new clients and providing services like payment protection, customer support, and platform infrastructure. However, I will share your feedback with the team for consideration.

 

Thank you,

patrickrai
Community Member

Hi, I have checked the Tax Identification section in my profile and have confirmed my address. My Aadhar number was already saved. Can you please tell me how do I know that I've successfully completed my Tax Information update for TDS?

VladimirG
Community Manager

Hi Pankaj,

 

I checked and it appears you've successfully added your tax info details. We can confirm if the number you've added is in the correct format, which is the case here, and you can check to ensure the information entered there is current.

rahulbangar786
Community Member

Upwork is asking adhar card from Indian freelancers but where I need to give my adhar card number?

LuiggiR
Moderator

Hi Rahul,

 

You may enter your PAN or Aadhaar number in the “Tax Info” section under “Settings". Feel free to check this announcement thread for more details.

 

Thank you.

patrickrai
Community Member

Hi Vladimir, thanks for your reply. I want to add that it's my PAN card number that was already saved before. And the PAN number that's saved is correct. Should I leave it be or replace it with my Aadhar number to complete the Indian TDS withholding process?

rahulbangar786
Community Member

Hi have entered my adhar card number, What else I need to do?

patrickrai
Community Member

Did you get any TDS ID verification success confirmation notification on Upwork or in your mail ID?

VladimirG
Community Manager

Hi Pankaj and Rahul,

 

If you've managed to add either your PAN or Aadhaar number successfully, i.e. it was accepted and you didn't get an error message, you're good to go. We don't display nor send a notification when tax info details are added. No further action on the Upwork platform is necessary and any validation needs to be done by the account owner.

synsoftglobal
Community Member

Thank you for your update oN TDS deduction on payments made by Upwork. I have a few queires:

 

1. TDS will be deducted on complete amount including Upwork fees/commission?

2. It will be deducted and dposited when?
   -on withdrawal OR

   -on each payment recd. in our Upwork account OR

   - every month end

   - or any other way

3. Does Upwork has Indian PAN (Permanent Account Number) ? ,if yes, please provide the same for our records.

4. Does Upwork has any office or address in India now?

 

Your answers will be appreciated.

 

Thanks


Sanjay