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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
aradhanadalai
Community Member

Thank You! This was very helpful 🙂

 

Just to clarify one more point, it is an annual document that will be issued only once, right? I read another blog post where it was mentioned about quarterly 16A, so got confused.

 

Regards,

Aradhana D

 

 

AleksandarD
Community Manager

Hi Aradhana,

 

The 16A form is issued each quarter. I suggest checking out this help article to learn more about this. I'll also merge your post in the announcement thread where you can find more information.

 

Thank you.

bhaskar_das01
Community Member

Hello

 

I have not still received Form 16A. How can I raise a support ticket for the same?

BojanS
Community Manager

Hi Bhaskar Narayan,

 

Rest assured that we will issue Form 16A to you. However, delays have occurred due to unclear filing instructions and limited guidance from our accounting partners in India. We know this information is critical to you and we are sorry for the delay. We will update you via email as soon as we know more. Please know that all funds withheld have been remitted to the Indian government; the delay has been in the reporting and allocation of those funds on an individual-user basis.

 

Thank you! 

 

Thank you.

inoactiv
Community Member

Hey Everyone,

 

Is any one able to to see Form 26a TDS deduction from upwork in Traces by now?

I am not able to see TDS for Oct-Dec 2020 and even no TDS for Jan-Mar 2020 in traces. 

As I read some people have said in this post that they are able to see TDS in traces by Upwork. However how is it possible that some people are able to see while others are not?

Can someone explain please.

vipunit
Community Member

I think UPwork doesn't report tds quarterly, my tds reflected on traces for full year ending march 2021

ruchikchauhan
Community Member

Hi Gurcharan, how did you contact Upwork?

vipunit
Community Member
skumard
Community Member

What is TAN of Upwork to check the details in TRACES?

PradeepH
Moderator

Hello Siva,

 

I'll have one of our customer support agents reach out to you directly and assist you further.

 

Thank you.

Pradeep.