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Indian TDS Tax Withholding on Upwork Earnings

Active Member
Bineesh K Member Since: Apr 2, 2020
11 of 180

This withholding tax will be refunded to our account? in future? 

Active Member
Vineet B Member Since: Jan 4, 2020
12 of 180

Hello Valeria,

I understand that Upwork is required to collect the withholding tax (Tax Deducted at Source) and deposit it with the Indian government. But from what I see in my tax portal, the amount of tax withheld from my earnings is not reflected. Can you please confirm the timeline by which you are required to deposit the withheld tax with the government, or please provide a statement along with the dates and amounts of the taxes are deposited with the government.

Thanks!

Moderator
Valeria K Moderator Member Since: Mar 6, 2014
13 of 180

Hi Vineet,

 

We are required to do our quarterly filing by 1/31/2021. Then the statements to the freelancers (Form 24Q) will be available within 15 days of that filing or 2/15/21 at the latest. 

~ Valeria
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Active Member
Nisha B Member Since: Oct 14, 2019
14 of 180

Hi,

 

I do all my work exclusively through an Agency in Upwork and all payments go to the Agency. Would the withholding tax apply to me or the Agency?

 

Regards

Active Member
Bibhas D Member Since: Oct 21, 2015
15 of 180

I have the same question. All Agency payments are going to Agency account, so is it require to add PAN for individual Freelancer?
Please let me know.
Thanks,
Regards

Active Member
Harsh P Member Since: May 6, 2015
16 of 180

I think Agency as your account will be connected with your Agency account and payment withdrawal happen through your agency account so. 

Moderator
Valeria K Moderator Member Since: Mar 6, 2014
17 of 180

Hi Nisha, Amit, Bibhas and Harsh,


Thanks for your questions. If a Freelancer is working on a contract under an Agency, the payments go to the Agency's account. So the tax will be withheld on that payment, and remitted in the name (and using the PAN) of the Agency.

~ Valeria
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Active Member
Amit D Member Since: Mar 2, 2017
18 of 180

If I am working under agency, do I need to provide my personal PAN and Aadhar details instead of the company's details? (As per the new rules of Upwork for Indian freelancers and companies)

Moderator
Joanne Marie P Moderator Member Since: Nov 26, 2017
19 of 180

Hi Amit,

 

I'd like to share the information that Lena noted on the announcement she posted here.

 

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.


-Joanne
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Active Member
Jyoti K Member Since: Jan 30, 2018
20 of 180

Hi Joanne,

 

Thanks for reposting this!

 

Seems like we will get TDS certificate from upwork every month and we can claim Tax credit/refund if they cut extra from Indian Gov. Make sense?

 

Thanks Again!

J