Indian TDS Tax Withholding on Upwork Earnings

lenaellis
Moderator

Starting October 1st, Upwork will begin withholding Tax Deducted at Source, TDS, from payments to freelancers and agencies located in India as part of a new tax law enforced by the Indian government.

 

As part of our continued efforts to remain compliant with tax laws in India, we are asking that our customers in India provide their Income Tax Identification number in the “Tax Info” section under “Settings”. For purposes of TDS withholding, the Indian government will accept either a Permanent Account Number (PAN) or an Aadhaar number. Please be sure to use the correct format for your PAN or Aadhaar number as defined by the Indian government:


  • PAN is a 10-digit alphanumeric entry, i.e., A A A A A # # # # A
    # = Numeric   A = Alphabetic 
  • Aadhaar is a 12-digit numeric entry


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.  Click here to Add Income Tax Identification.

 

To learn more about Indian TDS, click here

 

Let us know if you have any questions.



 

454 Comments
galaxysoftware
Frequent Visitor

Where and how can I get detailed statement of the TSD paid so that I can claim it in my ITR?

 

There is no statement for this specific requirement!

 

Also what is TAN of UPwork as Deductor?

bstojadinovic
Moderator

Hi Anupam,

 

Please refer to this post where Vladimir shared information about the reporting process.

 

Thank you!

 

 

lubna04
Frequent Visitor
We need TAN number of the employer to download Form 26AS from our Indian Tax website. Upwork hasn't provided us with any of the details to download Form 26AS
galaxysoftware
Frequent Visitor

Ok, fine we can wait till Feb 15 for first quarterly report! But it didn't answer my other question.

 

I would still like to have Upwork's TAN number as TDS deductor so that we can directly approach the IT department and check the status ourselved and not always have to wait for these quarterly reports!

 

That information can be shared privately to those who are getting TDS charged in their account, if upwork doesn't want to share publically, though I don't see any reason not to.

lubna04
Frequent Visitor

Yes, also until Feb 15th, 2021. We would de delayed in filing for TDS for Q4, 2020. As the last late to file TDS for Q4, 2020 ends by Jan 31st, 2021

djondinium
Community Manager

Hi Anupam,

 

I shared your request with the rest of our team and one of our agents already reached out to you directly via a support ticket to assist you further.

 

Thank you.

nipuntrivedi9
Active Member

Dear Lovelesh, 
I had a long conversation on this upwork support but no luck. They are still confused about this. From their representative, this is what I received,  "I know this is still confusing since this is new for everyone. Upwork is required to send the report until the end of January so for now, this is still in progress but you can use your Transaction History page to know how much is being remitted to the Indian government but this is in USD. I'm currently confirming if the form will be sent mid February or April. "

I will further update this thread as soon I receive any update from them.

 

Best Regards

Nipun Trivedi

vigus
Active Member

Upwork has withold 5% of my earnings with a notification on top about providing Aadhar Card Number.
I have provided my Aadhaar Card Number and notification has gone.
What next? How can I get back the amount upwork has withhold. It still shows 5% has been withhold. 

djondinium
Community Manager

Hi Vishwas,

 

Since the transactions in question appears to had happened before the Aadhaar was added to your account, a 5% rate has been applied. We are required to forward any tax we collect from our users to the Indian government. Going forward you should see the tax being withheld at a 0.75% rate.

 

Thank you.

bansalritesh18
Frequent Visitor

Hi team,

 

Since Upwork is deducting TDS on income, just want to know how can I download the TDS certificate from Upwork?

 

If I add my PAN or Aadhar number to Upwork, will I be able to download the certificate?

 

Looking forward to hearing from you.

 

Thanks
Ritesh