Indian TDS Tax Withholding on Upwork Earnings

[Joy Esther J]

Hello there,

For from Oct '20, the WHT is deducted by Upwork. Would like to know as under which section it will be remitted to Govt of India? Is it 194 J or 194 C or 192 ?? Kindly confirm ASAP. 

Regards

Joy

[Luiggi R]

Hi Joy,

I'd suggest that you contact your local tax advisor since we will not be able to assist you with this. You may check this help article for more information.

Thank you.

[Amar K]

I have been charged a WTH fee, I have put my PAN Card details, but still, the charge is deducted.
I was trying to withdraw funds, it threw me an error to re-enabled, I did it asked again to do it. Now again I added the bank accounts, tell me to wait for 3 days. This is kinda annoying, but before can I get the WTH fee back and refunded.

[Bojan S]

Hi Amar,

Upwork will withhold tax on all payments made on or after October 1, 2020. The law requires withholding based on the date of payments made, it does not provide an exception for payments that are related to periods before October 1.

The amount of tax we are required to withhold is dependent upon whether or not you have a valid PAN or Aadhaar number on file with Upwork:  

• For Upwork users that have a PAN or Aadhaar on file, we are required to withhold 0.75% of client payments to users. 

• For Upwork users that do not have a PAN or Aadhaar on file, we are required to withhold 5.0% of client payments to users.

You may check this help article for more information.

Thank you!

[Arin B]

I was wondering what might happen if one does not add their aadhar card number in Upwork.

[Bojan S]

Hi Arin,

Thank you for this question. The amount of tax we are required to withhold is dependent upon whether or not you have a valid PAN or Aadhaar number on file with Upwork:  

• For Upwork users that have a PAN or Aadhaar on file, we are required to withhold 0.75% of client payments to users. 

• For Upwork users that do not have a PAN or Aadhaar on file, we are required to withhold 5.0% of client payments to users.

If you do not currently have a PAN or Aadhaar number you may wish to consult with a trusted tax expert or advisor. Upwork cannot provide specific tax advice.

[Puneet B]

I have earned 60$ and upwork deduct 3.77$ as WHT.
Can Anyone help about WHT calculation according to above deduction?

[Bojan S]

Hi Puneet,

Thank you for reaching out to us with this question. I checked this for you and the correct withhold was applied on your transactions. $3.77 out of the $502.50 (which is 0,75%) and $0.45 out of the $60.00 (which is 0,75%). You can check this under your Transaction history.

[Aabhas S]

Hi,

I have an agency account and I completed a contract worth $150 and received only $118.87 instead of $120.

Can someone please explain?

[Bojan S]

Hi Aabhas,

Tax Deducted at Source (TDS) is a means of collecting income tax in India by requiring businesses making payments in India to remit a portion of that payment directly to the Indian government. The amount of tax withheld is matched to the service provider by using their Permanent Account Number (PAN) or the Aadhaar number. 

You can check this help article for more information.

Thank you!