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Indian TDS Tax Withholding on Upwork Earnings

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Active Member
Rajiv K Member Since: Oct 15, 2018
21 of 61

Deleted. Inappropriate content/question.

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Moderator
Joanne Marie P Moderator Member Since: Nov 26, 2017
22 of 61

Hi Rajiv,

 

You may enter your PAN or Aadhaar number in the “Tax Info” section under “Settings.”


-Joanne
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Active Member
Sahil B Member Since: Sep 26, 2017
23 of 61

Hi Goran, I file as a company in India. I want to use Company name under Legal Busines Name of W8-Ben, and PAN Card section. Could you please advise if that is okay ? Thanks

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Moderator
Joanne Marie P Moderator Member Since: Nov 26, 2017
24 of 61

Hi Sahil,

 

I'll go ahead and ask our team about this. I'll update you here once I have more information. Thank you. 


-Joanne
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Divyanshu M Member Since: Sep 30, 2020
25 of 61
I am a director of private limited company and want to work as an individual freelancer on upwork but I want all payment to be done in my company account?
My company name is different than my legal name.
Now few things i want to ask is :
1. Can I fill Company Pan no. In Pan no. Field?
2. Can I use my company current account to receive payment, if yes then what to write in first name, last name and name on account?
3. What to write in legal name of W-8BEN? Should I write my name or company name?
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Ace Contributor
Nitin Kumar S Member Since: Jun 9, 2014
26 of 61

Another question for the Upwork legal team. The government of India has clearly stated that TDS should NOT be deducted if the gross amount doesn't exceed 500,000 INR. I don't see any mention from Upwork regarding this. Kindly clarify how are you going to ensure this?Official clause of Income Tax Department, IndiaOfficial clause of Income Tax Department, India

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Moderator
Vladimir G Moderator Member Since: Oct 31, 2014
27 of 61

Hi Nitin,

 

Thanks for your question. To avoid payment and collection difficulties as well as exposures to penalties and interest, Upwork has been advised to withhold tax on all payments to users. You will be able to claim a tax credit or refund from the Indian government should you pay more taxes than required.

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Ace Contributor
Nitin Kumar S Member Since: Jun 9, 2014
28 of 61

 


Vladimir G wrote:

Hi Nitin,

 

Thanks for your question. To avoid payment and collection difficulties as well as exposures to penalties and interest, Upwork has been advised to withhold tax on all payments to users. You will be able to claim a tax credit or refund from the Indian government should you pay more taxes than required.



Thanks for the clarification, Vladimir. That's fine for now. However in the long run, I wish Upwork can put efforts (consult with tax experts to find a solution where you deduct TDS as per the exemptions provided in the law). 

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Community Guru
Prachi T Member Since: Nov 4, 2017
29 of 61

Nitin Kumar S wrote:


However in the long run, I wish Upwork can put efforts (consult with tax experts to find a solution where you deduct TDS as per the exemptions provided in the law). 


This cannot happen. There is no way Upwork can figure out what a freelancer's total annual earnings are. Upwork is not the sole source of income for many freelancers.

 

The only solution here is to file for tax returns if your total annual income exempts you from paying income tax. 

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Ace Contributor
Nitin Kumar S Member Since: Jun 9, 2014
30 of 61

Prachi T wrote:

Nitin Kumar S wrote:


However in the long run, I wish Upwork can put efforts (consult with tax experts to find a solution where you deduct TDS as per the exemptions provided in the law). 


This cannot happen. There is no way Upwork can figure out what a freelancer's total annual earnings are. Upwork is not the sole source of income for many freelancers.

 

The only solution here is to file for tax returns if your total annual income exempts you from paying income tax. 


Then why would the government add this clause?  No deduction under sub-section (1) shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of an e-commerce participant, being an individual or Hindu undivided family, where the gross amount of such sale or services or both during the previous year does not exceed five lakh rupees and such e-commerce participant has furnished his Permanent Account Number or Aadhaar number to the e-commerce operator.

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