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gopip18
Community Member

Unable to verify your Tax ID number on Upwork

Please check my Legal Taxpayer Name. Now I verified the legal name and PAN number. Please check and approve.

gopip18_1-1646185972652.png

 

 

ACCEPTED SOLUTION
AveryO
Community Manager
Community Manager

Hi Abdul, 

 

The TAX ID (PAN) status is under "Pending Verification" until we have a manual verification for PAN. Once you enter a PAN number, you will automatically get a reduced withholding tax of 1% regardless of the PAN "Pending Verification" status. There is no further action needed on your end. 


~ Avery
Upwork

View solution in original post

365 REPLIES 365
3f4ac937
Community Member

Hi Upwork team,

 

2 Months back, I posted the same question. The solution was to get my PAN card approved. My PAN card is approved now. But, still in the recent transactions, total of 2.8 (GST: 1.8% + Withholding Tax: 1%) is reduced from my payment. Why is it so?

Please let me know.

 

With Regards

Geetha

Hi Geetha,

 

I understand your concern regarding the tax deductions from your payment. Let's clarify this issue for you. The tax deductions you mentioned consist of both Goods and Services Tax (GST) and Withholding Tax. Since you have updated your PAN number, your Withholding Tax is reduced from 5% to just 1%.

 

We’re required to comply with the tax laws of the countries where we operate to continue to do business in those countries. In India, it is mandatory for us to collect Goods and Services Tax (GST) on Upwork services and deliver it to the government, unless we have a valid GSTIN (GST identification number) on record for you. In the event that you do not provide a valid GSTIN, we are obligated to charge you GST and remit it to the Indian government. However, if you supply a valid GSTIN, we will be exempted from collecting the tax. To enter your GSTIN, go to your account’s Settings > Tax Information.

 

To get a clearer understanding of the specific deductions in your case, we recommend reviewing your transaction details or consulting with a tax professional who can provide guidance tailored to your situation. If you have any further questions or need assistance, feel free to reach out to us.

 

- Pradeep

Upwork

Thank you for explaining.

Regards

Geetha

llocale
Community Member

Hello there,

 

I wanted to clear out a query: I have already submitted my Tax details like PAN number and that PAN is already linked to Aadhar in India. Inspite of the details already there, the recent transaction shows upwork charged 5% WHT, whereas it should be 1%.

 

Please have look at the screenshot and clarify. Thankyou!

Hi Kamal,

 

We’ve escalated your community post to a support ticket. One of our agents will be in touch with you soon to assist.

~ Luiggi
Upwork
8a86a309
Community Member

I have already submitted and verified my PAN and the step shows complete. It was done last year and I got verification, but still this notification always shows on top of my profile:  "In compliance with Tax Law in India, Upwork withholds 1% Tax at Deduction Source (TDS) from your payments. The TDS can be as much as 5% if you haven't provided your govt. issued tax id yet. Please click here to add your PAN asap. For more details, read our FAQs." I have tried in customer service chat, but couldn't get a resolution. Someone please help.

Untitled.jpg

Hi Vipin,

 

We’ve escalated your community post to a support ticket. One of our agents will be in touch with you soon to assist.

~ Luiggi
Upwork
4579157e
Community Member

I have my PAN card added to my Upwork account and have completed all of my tax information and tax forms. But instead of a 1% Withholding Tax deduction, a 5% WHT was deducted from my payment.

 

According to this upwork article https://support.upwork.com/hc/en-us/articles/360044709894-Indian-Tax-Deducted-at-Source-TDS-or-Withh...

I'm new to this website. can someone please help?

Hi Aakash,

 

We’ve escalated your community post to a support ticket. One of our agents will be in touch with you soon to assist.

~ Luiggi
Upwork
56b34812
Community Member

I have provided govt. issued tax id and PAN, but the upwork site it still tells "In compliance with Tax Law in India, Upwork withholds 1% Tax at Deduction Source (TDS) from your payments. The TDS can be as much as 5% if you haven't provided your govt. issued tax id yet. Please click here to add your PAN asap. For more details, read our FAQs."

 

I have made sure all details are correct, it also tells the process it completed. 

 

image_2024-05-29_114705486.pngimage_2024-05-29_114802553.png

 

It has been week I am facing this. 

Hi Titiksha,

 

Thank you for your message. I checked and can confirm that you have already added your PAN number under the tax identification number section, but you have not added a signature and clicked the check box under the Signature section. You will need to add enter your full name as your Signature and click the check box below that as seen here. Also, enter your signature under 'Affidavit of unchanged status' section.

 

- Pradeep

Upwork
eafc00f0
Community Member

It's been 8months on upwork and with my pancard verified since day one but still I get charged 5% WHT on every earning. 

Please shine light on this, Thank you.

 

**Edited for Community Guidelines**

 

we all pay too, idk about other nations but they charge Indian for 5% WHT

Hi Sarkar,

 

Thank you for reaching out to us. I shared your report with our team and one of our agents will reach out to you using a support ticket to assist you further. You can access your support tickets here.

 

- Pradeep 

Upwork

Hello Upwork Staff,

This is the same situation with my account as well, Even I am charged with 5% WHT.

Could you please reolve the issue as early as possible.

 

Thanks and Regards,

Anish Gunda.

Hi Anish,

 

We’ve escalated your community post to a support ticket. One of our agents will be in touch with you soon to assist.

~ Luiggi
Upwork

Hey Pradeep,

I'm also facing the same issue. I have already submitted my tax information and everything seems to be successfully validated. But I'm still being charged 5% WHT instead of 1%. Hope for a it to be fixed soon

Thanks,

Rizwaan

Hi Rizwaan,

 

Thank you for reaching out to us. I shared your report with our team and one of our agents will reach out to you using a support ticket to assist you further. You can access your support tickets here.

 

- Pradeep  

Upwork
d0d61b47
Community Member

Hi Team,

 

I hope you are all doing well.

 

I updated my PAN card on May 25, 2023, and all the details have been updated accordingly. However, I noticed that my tax is being deducted at 5% instead of the correct rate of 1%.

 

Can someone please explain what might be causing this issue?

 

Please see the attached snapshot for reference.

 

Thank you for your assistance.

 

 

**Edited for Community Guidelines**

Make sure your PAN is linked to AADHAR, if it is not linked PAN becomes inactive, and Upwork will withhold 5%, faced a similar problem and after linking I had to raise a ticket to get it back to 1%...

 

If you have already linked PAN to AADHAR raise a ticket, if not get it linked first! 

Hi Team,

 

Awaiting your reply

 

Thanks.

Hi Jalpa,

 

Thank you for reaching out to us. I shared your report with our team and one of our agents will reach out to you using a support ticket to assist you further. You can access your support tickets here.

 

- Pradeep 

Upwork
techfr_solutions
Community Member

Hi,

I have a doubt. I am running an agency on Upwork and my freelancer account as well.

So on both accounts withdrawal method is different one is for agency bank details to withdraw and second is to withdraw into my own personal account.

My question is: Can I change/use my agency BANK account details and PAN details to my freelance account to withdraw amount at same place?

Thanks!

Hi Anmol,

 

You can add your agency bank details to your freelancer account only if you are the owner or one of the partners for your agency. You will also need to add the agency PAN to your freelancer account to ensure you adhere to your country's tax law. 

 

- Pradeep

Upwork

Thanks

4ba6ceb9
Community Member

Upwork is saying my tax information is wrong but it isn't.

I know my information is correct fully. I can prove it.

Hi Aishwarya,

 

I checked and it appears that your name on the PAN card does not match the registered name on Upwork. You will need to ensure your Upwork account name matches your PAN card to resolve this issue.

 

- Pradeep

Upwork

Hi, Pradeep. I have never had an issue with this filing for taxes. The way my name is on my account is the way it is on my bank account, Passport, and Aadhaar. The way my name is in my tax info is as it appears on my PAN. This has never been an issue. It's obviously the same name and person just one name has the surname in front and it's an initial.

Hi Pradeep, I figured out the problem. The PAN card needed to be linked with my Aadhaar card. I have now done so. Can an administrator again manually review my tax information to confirm it, please? Thanks.

760212e5
Community Member

I am also facing a same problem. My PAN has been added and verified by Upwork before I starts freelancing job. But still upwork charging 5%. Can someone help on this.

jayvyas009
Community Member

I completed all the information required for tax verification and provided all the valid information, but Upwork deducted 5% of WHT from my payment.

Not able to figure out the problem.

Hi Jay,

 

Thank you for reaching out to us. I shared your report with our team and one of our agents will reach out to you using a support ticket to assist you further. You can access your support tickets here.

 

- Pradeep 

Upwork
panchdev
Community Member

Hello Community!

 

I've been noticing for so long that Upwork has been keeping 5-6% of withholding tax (Indian Resident) although I have supplied authorized PAN Details to Upwork. So, why is Upwork keeping this money in the name of the Withholding tax though PAN details are provided? Is the withholding money something that we can get back? If yes, how?

 

Please help me understand withholding tax and how can we get back if we can. If not, why can't?

 

Thanks, 

 

- Panchdev Singh Chauhan

The tax withholding is TDS, so whatever is deducted from your payment will be deposited by Upwork with tax authorities. You will be able to claim an adjustment toward tax payable or get a refund is they have deducted more than your tax liability! You can check Form 26 to verify all deductions. 

 

Upwork should deduct tax witholding @  1% of your earnings, but if your PAN and Aadhar card is nor linked they will deducated at 5%. If your Pan and Aadhar is linked write to support and inform them, if not you have to link Pan and Aadhar. Then Upwork will deduct @ 1% rate

 

 

Hi Panchadev,

Thank you for sharing your concern about the withholding tax on your account. I have escalated this to a support ticket so they can look into it for you. One of our agents will reach out to you shortly. 

~Ronna
maxspears
Community Member

I am an Indian - my PAN details are added in Upwork but even then i am seeing a 5% WHT charge held by  upwork.

 

Is there a reason for this?

A moderator will assist you to create a support ticket and this will get resolved.

H Monis,

 

I can see that you've already raised a support ticket regarding your concern. You can access your support tickets here. Note that support requests are responded to in the order they are received. Kindly allow 24-48 hours for the team to follow up with you and assist you further.

 

- Pradeep

Upwork
f103128d
Community Member

Hi , 

I have been trying to speak with someone regarding tax information. I have input all information and it is marked as compelte. However, I still get the message that I need to complete my tax info. 

I had raised a concern , probably over chat , Mridula Sharma from the tax team replied to me . I wanted to ask a few more questions but i just dont find any way to connect with the support team. The chatbot doesn't help in my matter.  

I was asked to upload my PAN card , but there is no instruction as to where i need to do that . 

Would it be possible to kindly route my request to the tax department which can provide me with precise isntructions. 

 

Sorry , i understand this might be the wrong forum to ask about tax queries , but as of now this is the only way i find to send my query accross. 

 

Thanks,

Aniket Shende

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