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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
galaxysoftware
Community Member

There you go..

 

TAN number: DELU07765C

mana_07
Community Member

When can Indian freelancers receive their Tax forms? As its already very much detailed, so any expected time? 

prakashbask
Community Member

Today I looked at my Form 26AS. It shows entries only for Oct-Dec 2020. TDS details from Jan 21 - Mar 21 are missing. When will this be updated? We are blocked and unable to file our returns

NikolaS
Moderator

Hi Prakash,

 

Thank you for contacting Upwork. We truly appreciate your patience, as we recognize how critical it is for you to have necessary tax documents in a timely manner. As a result of COVID-19, there have been significant delays in processing the 16A forms needed, but we are working closely with the India Government to obtain these as soon as possible. You will receive an alert as soon as your documents are processed. Again, we appreciate your patience and understanding.

 

galaxysoftware
Community Member

Did the email promised to us Indian freelancers containing tax/TDS details/updates in February reached to anybody out there yet?

aradhanadalai
Community Member

Hi Angad,

 

I am a beginner freelancer. I have seen many discussions on this forum related to Traces. Can you tell me what is that and where can I find it?

g_vasilevski
Retired Team Member

Hi Aradhana,

 

Could you please share more information about your question so that I can advise you accordingly? Thank you.

e0d6df0f
Community Member

Hello team,

 

I am a Freelancer from India. I did not receive my Form 16 for FY 2020-2021 as yet. Please provide a copy and resolve as I have to file my tax returns.

g_vasilevski
Retired Team Member

Hi Ravikanth,

 

Thank you for contacting Upwork. We truly appreciate your patience, as we recognize how critical it is for you to have necessary tax documents in a timely manner. As a result of COVID-19, there have been significant delays in processing the 16A forms needed, but we are working closely with the India Government to obtain these as soon as possible. You will receive an alert as soon as your documents are processed. Again, we appreciate your patience and understanding. Thank you.

e0d6df0f
Community Member

Hello Goran,

 

thanks for the update. Can you tell me the TAN of Upwork in India so I may use the same and file my tax return without delay?

 

Regards,