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
nitinsharma91
Ace Contributor

Hi Ritesh! I don't think Upwork has launched any mechanism to download TDS certificate. However, you should be able to get all the tax deducted details from Form 26AS on TRACES portal, once it's submitted to the relevant authorities by deductor (in this case Upwork)

soniamadan
Frequent Visitor

Hi,

 

As suggested in your post we added PAN & other Tax details in our account and Tax was deducting 0.75% starting from Oct1, 2020 but as soon as we created sub accounts under our main account 5% tax withholding start deducting. Kindly revert asap.

 

tinker_bell3
Moderator

Hi Sonia,

 

I checked your account, and I can see that our team is already assisting you regarding this concern. One of our agents will update you directly on your open ticket to assist you further. Here's your ticket number: 30906474, and you can access it here

9ed00e97
Active Member

I would like to know how can we download Withholding Tax certificate . So that we can claim the same while filing incometax.

g_vasilevski
Moderator

Hi Jaina,

 

Thanks for your question. You will be able to download a Form 26AS from TRACES in April, after the Indian tax year closes. This form can be used to file your annual taxes. Going forward, you can also visit TRACES to see your year-to-date tax info. Additionally, we will issue a Form 16A to you each quarter. These certificates will be sent via email and we are making every effort to deliver these certificates by Feb. 15, 2021. Thank you.

keyur2020
Active Member

Hi, Upwork advised in past that TDS Details and statement for the Quarter ending December 2020 will be available by 15th Feb 2021.

 

It's already 15th today and no statement received from Upwork to date for the TDS deducted in each release of payments from client-side to us. 

 

We have specific due dates in India to file and submit returns. Why should we pay late filing or late payment charges/penalties?

 

When this statement will be available?

This is high time now as this new process has delayed the internal accounting a lot and we need resolution on this, please.

 

vladag
Community Manager

Hi Keyur,

 

Thanks for the message. I understand your concern but would like to clarify that we have shared before that we'll make every effort to deliver these certificates by Feb. 15, 2021. We'll follow up with an update regarding when the certificates will become available and will continue doing our best to support our users in India. Thank you.

galaxysoftware
Frequent Visitor

15th just started for them, cool down, give them some time. And due to huge number of emails it's better they don't rush it to prevent any mistakes.

zafarahmed0511
Frequent Visitor

Hi, its already 17th and haven't recieved any email from Upwork regarding the tax. Did anyone get the email?

jaswinders
Frequent Visitor

Hi, I just checked my form 26 As and the WHT is not reflecting there.. I think quarterly return filing date was 31st Jan and by now it shall reflect in my account. Can you please help me on this ? If there are some different rules from Upwork then kindly guide us