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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

Hi,

I have provided PAN for tax information and the name on it is an exact match to the upwork records.

 

Ironically I still am waiting for any updates to be reflected on TRACES.

 

I'm using same details to file my ITR for last 10 years, so what is upwork's excuse in my case?

 

Thanks

sajeeth35
Community Member

Hi Goran, Thank you for the updates..

I Would like to know  when i can get this Update. I could see some mistake in my Traces Form 26as document from Upwork Earning. Kindly give me some  approximate date and time. So it will be helpful to Plan accordingly with my Auditor.

 

Thanks for Understanding,

 

Regards,

M.Sajeeth

reshma-b
Community Member

Hello,

 

I would also like to know the same. I have not yet received my Form 16A for the period Oct 20 to Dec 20. Secondly, income credited and tax deducted details for Jan 21 to Mar 21 are not visible 26AS Form in TRACES Income tax portal.

 

Kindly update on the above.

 

Regards,

Reshma

g_vasilevski
Retired Team Member

Hi Reshma,

 

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. 

mobilyzz-sanjay
Community Member

Guys, chop-chop. The deadline is approaching, and it has been so much time already. 

mobilyzz-sanjay
Community Member

Anything yet?

mobilyzz-sanjay
Community Member

Alright, it looks like Upwork has finally filed Jan 2021 - Mar 2021 quarter data.  I can see my data on TRACES. 

 

Thank you, Upwork. Just waiting for the issuance of form 16A, and then I'll go ahead and file my ITR. 

nabhassy
Community Member

Yes, It seems like upwork has filed it on 20 July 2021.

I can see it on Form 26AS and the amounts are correct.

Since it is shown in Form 26AS we can file returns using that data.

Form 16 A is just a formality.

gurpreetka-sdei
Community Member

 

Can you atleast provde me TANnumber of upwork so that i can download my certificate atleats fro TRACE

sukanyapandiaraj
Community Member
Upwork tan DELU07765C

Was posted in another similar discussion. Hope this helps.