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Indian TDS Tax Withholding on Upwork Earnings

loveleshsoni1349
Active Member
Lovelesh S Member Since: Mar 6, 2019
21 of 283

Hi Gurucharan,

 

My CA checked it and it's not reflecting there. I spoke to Upwork customer care and they will get back to me in 1-2 days. They said that they email the Tax form after every quarter. Is it true? Have you or any other upwork member received such email from them?

 

-Best

Lovelesh

sandip3705
Active Member
Sandip G Member Since: Dec 29, 2016
22 of 283

No we have not received yet.!

vipunit
Active Member
Gurcharan S Member Since: Mar 3, 2021
23 of 283

Hello Lovelesh,

TDS deducted should be remitted quarterly, but it not followed by UPWORK so far. i believe that there is way to wait for the end of march. When tds remitted will be reflected in TRACES in ITR portal in INR, then you can file your return, moreover you need to consider UPwork fee as expense thereby you need to pay taxes only on INR credited in you inidan bank account.

nishamoon
Active Member
Nisha B Member Since: Oct 14, 2019
24 of 283

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

disha_india
Active Member
Bibhas D Member Since: Oct 21, 2015
25 of 283

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

pathakharsh78
Active Member
Harsh P Member Since: May 6, 2015
26 of 283

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

kochubei_valeria
Community Manager
Valeria K Community Manager Member Since: Mar 6, 2014
27 of 283

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
Untitled
amitdmsp
Active Member
Amit D Member Since: Mar 2, 2017
28 of 283

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)

tinker_bell3
Moderator
Joanne Marie P Moderator Member Since: Nov 26, 2017
29 of 283

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
Untitled
jkhamesra
Active Member
Jyoti K Member Since: Jan 30, 2018
30 of 283

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

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