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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
sharmadurgesh14
Community Member


Please help me understand this and that how can I get my money back in my Upwork account?

**Edited for community guidelines**


Hi Tiffany,

Hope you're doing well!

Could you please help me understand the above email if it means that Upwork has given my hard earned money to the Indian Government and how I can get my money back?
Please help me understand I am really worrying.

Thank you!



JoanneP
Moderator

Hi Durgesh,

 

I can see that you already have an open ticket regarding this issue. One of our agents will update your ticket and assist you further. 

keyur2020
Community Member

Hi, After reading your detailed mail, it gives all the indian Upwork community member A LITTLE sigh of relief but seems you have just considered final tax return filling date as 31st July,2021. 

 

If you discuss with your indian tax and accounting partners , we have due date of GST filling returns which is already passed for the quarter ending Dec,2020 and based on your given schedule , we will surely miss due date for quarter ending March,2021.

 

I am not sure but Upwork being a great huge entity must be having quality partners in India and how this dates can be disregarded which will create hussle for all indian tax payers registered with Upwork?

 

Can you kindly focus some lights on GST due dates we have in India and talk to your indian accounting partners to get back to us? This is crucial now. PLEASE.

 

Thank you!

govindasamyjgces
Community Member

Hi Upwork Team, Good day to you.

 

I have submitted already my Aadhaar card details in upwork. But unfortunately ,in my account withholding tax 5% dedcuted on my earnings. Please review and reverse this withholding Tax.

Thanks and looking for your actions at the earliest.

 

Today upwork has dedcuted wtholding tax 3 USD for 60 USD earnngs , please reveiw and ensure that there will not be 5 % withholding tax dedcution from my earnings 

AndreaG
Moderator

Hi Govindasamy,

 

I checked this for you and can confirm that the withholdings on your account are correct at 0.75%. Please, make sure you check the correct transactions in your Transaction History. The number of the related transaction will show in the description for the WHT transaction. You can check out this help artice for more information on how this tax is calculated.

 

Thanks!

govindasamyjgces
Community Member

Hi Upwork Team ,

Good day to you.

I have provided my Aadhaar details in upwork platform, but my earning are dedcuted 5% witholding tax.

Iam really worried on this because after providing Aadhaar details upwork deducted 5% so please review and reverse the withholding Tax.

 

Regards

Govindasamy Jaganathan 

 

AleksandarD
Community Manager

Hi Govindasamy,

 

I checked and the withholdings are at 0.75%, not 5%. You can check out this help artice for more information.

 

Thank you.

amin_raiyani
Community Member

Taken 5%

AleksandarD
Community Manager

Hi Amin,

 

I checked and the withholdings are 0.75%, not 5%.

 

In general, TDS will apply to all client payments sent to Indian freelancers and agencies, with the amount of TDS to be collected determined by whether or not you have provided a PAN or Aadhaar number to Upwork.

 

  • A 0.75% tax is withheld from earnings for freelancers that provide a PAN or Aadhaar number to Upwork.
  • A 5% tax is withheld from earnings for freelancers that have not provided a PAN or Aadhaar.

 

You can check this help article for more information.

 

Thank you.

amin_raiyani
Community Member

Can you check for this referenace id please? @Aleksandar D
361703131
361703187
361703220
362796128

and many otheres in Feb and March month.

There is a 5% charge taken.