Indian TDS Tax Withholding on Upwork Earnings

[Valeria K]

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%.

[Sunderdeep S]

Did they help you because they are doing the same with me? I had PAN info long time back but they silently were deducting 5% and when contacted to their Support, they had no answer and simply said they will email me.

[Vineet B]

Yes, they did. Actually they cannot do anything here as they are
statutorily required to withhold the tax and deposit with the government
authorities. We just need to make sure that it reflects in the income tax
portal (Form 26AS I guess).

[Shibajyoti B]

This is sort of an untold premium membership process !!

[Dilshad K]

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?

[Bojan S]

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!

[Anil C]

The Website of Income tax department India shows that no deduction shall be made if  the gross amount during the previous year does not exceed five lakh rupees and PAN information is submitted.

My gross amount during the previous year is less than INR 5,00,000 and PAN is given.

But TDS is still deducted. 

Please verify.

This is the url of Section 194 - O.   of Income tax department

https://www.incometaxindia.gov.in/_layouts/15/dit/mobile/viewer.aspx?path=https://www.incometaxindia...

This is the relevant portion from the Website.

No deduction under sub-section (1) shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of an e-commerce participant, being an individual or Hindu undivided family, where the gross amount of such sale or services or both during the previous year does not exceed five lakh rupees and such e-commerce participant has furnished his Permanent Account Number or Aadhaar number to the e-commerce operator.

[Joanne Marie P]

Hi Anil,

To avoid payment and collection difficulties as well as exposures to penalties and interest, Upwork has been advised to withhold tax on all payments to users. You will be able to claim a tax credit or refund from the Indian government should you pay more taxes than required. Since we cannot offer specific tax advice, we suggest you reach out to a trusted tax expert or advisor to learn more about Indian TDS and your tax obligations. 

[Anil C]

Hi Joanne, 

I am writing this after consulting with tax expert. 

Please read my earlier post in detail.

The Income tax department website, clearly  states that no deduction shall be made if  the gross amount during the previous year does not exceed five lakh rupees.

https://www.incometaxindia.gov.in/_layouts/15/dit/mobile/viewer.aspx?path=https://www.incometaxindia...

If you google “section 194 O”, you can see all websites showing this limit of 5,00,000. 

People working in similar platforms told me that they are deducted only if their amount is above INR 5,00,000.  

[Joy Esther J]

Hello there,

For from Oct '20, the WHT is deducted by Upwork. Would like to know as under which section it will be remitted to Govt of India? Is it 194 J or 194 C or 192 ?? Kindly confirm ASAP. 

Regards

Joy