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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
786shipram
Community Member

Where to upload Pancard to decrease TDS hold amount.
I have received a notification on Upwork that I need to submit a pan card to reduce the TDS amount hold but I am not sure where to upload it?

 

Also, can we use Upwork on multiple computers?

I sometimes sit in my coworking space and some time at the home and I use laptop and desktop sometimes at multiple places. Can I use Upwork on multiple devices or it could be an issue due to an IP change?

Please reply...

BojanS
Community Manager

Hi Shipra,

 

You can enter your PAN or Aadhaar number in the “Tax Info” section under “Settings.”

 

You are allowed to use multiple computers/laptops or IPs to work from as long as you don't share your account with another person. It's important that you don't share your log in credentials with anybody and don't log into other users' accounts as it's a serious violation of Upwork TOS.

 

Thank you!

786shipram
Community Member

Hey Bojan S,

I hope you are doing great.

Can you please tell me if there any option where I can see how much amount is on hold for TDS after submitting the pan card detail?

NikolaS
Moderator

Hi Shipra,

 

Thanks for your question. 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.

 

Let us know if you have further questions. 

phpdevelopers
Community Member

How to Claim TDS by showing income from foreign source?

shibajyoti
Community Member

This is sort of an untold premium membership process !!

sambhu_sahani
Community Member
Payment 5% was deducted from my last project eventhough i have updated the PAN details
AleksandarD
Community Manager

Hi Sambhu,

 

Since the transaction in question appears to had happened before the PAN number was added to your account, a 5% rate has been applied. We are required to forward any tax we collect from our users to the Indian government. Going forward you should see the tax being withheld at a 0.75% rate.

 

Thank you.

tmind2minds
Community Member

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?

BojanS
Community Manager

Hi Dilshad,

 

We've been advised that the reporting is done quarterly. So a statement will be provided to you every three months. You can check this help article for more information.

 

Thank you!