Reply
cancel
Showing results for 
Search instead for 
Did you mean: 
Reply

Indian TDS Tax Withholding on Upwork Earnings

andregutierrez22
Moderator
Andrea G Moderator Member Since: Jul 7, 2020
321 of 449

Hi Sri Mohana Ramya,

 

You should be able to download a Form 26AS from TRACES, after the Indian tax year closes. This form can be used to file your annual taxes. Going forward, you can also visit TRACES to see your year-to-date tax info. Additionally, we will issue a 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.

 

~Andrea
Upwork
sriramyamerla
Active Member
Sri Mohana Ramya M Member Since: Apr 30, 2019
322 of 449
Hi Andrea,

I have checked TRACES and it shows there is no amount credited to the Indian government for my PAN number.

Indian tax year is closed on March 31 2021, and the Form 26AS doesn't show any tax amount credited from Upwork.

rohetgoel
Active Member
Rohit G Member Since: Dec 27, 2017
323 of 449
I have checked TRACES and it shows there is no amount credited to the Indian government for my PAN number.

Indian tax year is closed on March 31 2021, and the Form 26AS doesn't show any tax amount credited from Upwork

Additional, last daye to file income tax returns without penalty is 31st june 2021 for FY 20-21. Incase tds deposited doesn't gets credited to my pan, i will end up paying penalties which is 5000 Rupees
pradeephele
Moderator
Pradeep H Moderator Member Since: Jan 11, 2021
324 of 449

Hello Rohit,

 

We had hoped to have the tax information available by the end of the Indian tax year, but there were some delays due to unclear filing instructions and limited guidance from our accounting partners in India. 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. 

 

We understand this information is critical to you and we are sorry for the delay. We should have this matter resolved as soon as possible, so you should not incur any penalties from the delayed issuance of the form 16As. You should receive an update via email as soon as this is resolved.

 

We appreciate your patience. 

 

Thank you.

Pradeep H.

Untitled
rohetgoel
Active Member
Rohit G Member Since: Dec 27, 2017
325 of 449
Pradeep, you guys are just passing the ball from here to there.
If the tax credit is not showing in my account, how can i file my returns. If i file my return without tax credit from Upwork, i will lose that money and will not be able claim refund/setoff from revenue department and in future revenue department will question me whether I have consider that amount in my return, because your amount is not reflecting. Unnecessary compliance burden will a arise for me.

So i would suggest you get your head together and get it resolved on priority basis.

As you saud "limited guidance from our accounting partners in India" hire better partners in India.
galaxysoftware
Active Member
Anupam G Member Since: Mar 31, 2017
326 of 449

That's right Upwork,

 

I totally agree with Rohit!

 

Hire better partners in India, there are many.

 

It's an irony that we have to suggest this to you guys!!

 

Tax credits should promptly reflect in our accounts, this is not something that should be taken lightly!!

 

You guys already have had more then 6 months to resolve this issue fully!

rohetgoel
Active Member
Rohit G Member Since: Dec 27, 2017
327 of 449

I don't understand what are you guys doing, it's just a simple return with very simple information, I don't why are you guys having such a hard time.

 

you have mentioned on URL https://support.upwork.com/hc/en-us/articles/360044709894-Indian-Tax-Deducted-at-Source-TDS-or-Withh...

Form 16A for October–December 2020 –– We expect to email the form to you in April, and your transaction details for that quarter should be visible in TRACES  around the same time.  

Form 16A for January–March 2021 –– It should arrive on schedule in May and you should be able to view details in TRACES in June"

 

We are unable to view tax credits for the period of Form 16A for October–December 2020, which was due in April, As stated by upwork. However, as of 17th May 2021, we haven't received any update from you guys. It's like Upwork is only worried about his commission and fees, they are least worried about the various freelancers working on their platform. 

 

I am again repeating myself

 

The Indian tax year is closed on March 31, 2021, and Form 26AS doesn't show any tax amount credited from Upwork.

Additional, the last date to file income tax returns without penalty is 31st July 2021 for FY 20-21. In case TDS deposited doesn't get credited to my account with the revenue department, I will end up paying penalties which will be 5000 Rupees

 

If the tax credit is not showing in my account, how can I file my returns? If I file my return without tax credit from Upwork, I will lose that money and will not be able to claim a refund/setoff from the revenue department, and in the future revenue department will question me whether I have considered that amount in my return, because your amount is not reflecting. An unnecessary compliance burden will arise for me.

So I would suggest you get your head together and get it resolved on a priority basis.

As you said "limited guidance from our accounting partners in India" hire better partners in India. Let me suggest to some partners in India,  E&Y, PWC, KPMG, Deloitte.

 

I am currently exploring, how to report the Ministry of finance and external affairs of India against negligence on the part of Upwork. 

 

My words might be harsh, but we are not getting any updates and responses from Upwork apart from the scripted replies. 

sukhjindersi
Active Member
Sukhjinder S Member Since: Jun 20, 2018
328 of 449

I think only way is to Trend a #hastag on Twitter about this issue, might be this will open up there eyes.

reyanshkharga
Active Member
Reyansh K Member Since: May 31, 2019
329 of 449

Hi,

 

If Upwork is withholding some amount as TDS, why is it not being reflected in my form 26as of the income tax?

 

Can any Indian freelancer having a good understanding of the Indian tax system explain how you file tax returns for the income generated from Upwork?

 

Your help will be greatly appreciated. 

 

Thank you!

karmicdice
Active Member
Keval D Member Since: Jun 3, 2021
330 of 449

Hey guys,

 

So I went through this link : https://support.upwork.com/hc/en-us/articles/360044709894-Indian-Tax-Deducted-at-Source-TDS-or-Withh...

 

5% of the tax was withheld with Upwork in compliance with the Indian government, which is understandable. However, after I updated my PAN details, it started withholding 1%.

 

In the article it says : 

"Form 16A for January–March 2021 –– It should arrive on schedule in May and you should be able to view details in TRACES in June."

TRACES is linked with Aadhar and PAN. What happens to the 5% which were withheld before I updated my PAN details?

 

Is there a way where Upwork can give some details so that I can claim my tax rebate from the government?

 

In India, companies that deduct tax at source may choose to give, what we call it as, a "TDS certificate".

 

Any ideas?

TOP KUDOED MEMBERS