Hi Joy Esther,
The amount of tax we are required to withhold is dependent upon whether or not you have a valid PAN or Aadhaar number on file with Upwork:
For Upwork users that have a PAN or Aadhaar on file, we are required to withhold 0.75% of client payments to users.
For Upwork users that do not have a PAN or Aadhaar on file, we are required to withhold 5.0% of client payments to users.
The withholding tax is calculated based on the gross amount that the user invoices their client, so it is calculated prior to freelancer service fees or any other fees that may reduce the amount credited to the user’s account. You can check this help article for more information.
I did mailed you two times about tax withholding but i didn't get any response from your side.my question was why the upwork deduct 5 percent taxes? i have already updated my Aadhar number. than why it's happen to deduct 5 percent tax? as per upwork rules upwork should deduct only 0.75 percent.
Can you plaese check asap?
Aarti, Gautam and Gagandeep,
We appreciate your patience while we were checking on this. The team confirmed that the transactions you were referring to had happened before PAN/Aadhar numbers were added to your accounts. Therefore, it was withheld at 5% rate. Going forward you should see the tax being withheld at 0.75%.
Upwork has started Withholding Tax or TDS for Indian Freelancers from Oct2020. I want to download the TDS or WHT report. How can I download the TDS or WHT report of my account?