If your PAN and Aadhaar are linked, the TDS rate is 1% on annual earnings exceeding ₹5 Lakh up to 1st October 2024. The TDS rate is reduced to 0.1% from October 1, 2024. Earnings exceeding ₹5 Lac before 1 Oct 2024 will be taxed at 1%, while those after 1st Oct will be taxed at 0.1%
If your PAN and Aadhaar are not linked, a penalty TDS rate of 5% applies from July 1, 2023.
To avoid the higher rate, link your PAN and Aadhaar as soon as possible after paying the ₹1,000 penalty to the government.
When is TDS Deducted
If a driver-partner has historically earned more than ₹5 Lakhs in a financial year, TDS is deducted on every trip starting from the beginning of the financial year.
For other driver-partners, a one-time TDS deduction happens when earnings reach ₹5 Lakhs in a financial year. After that, TDS is deducted on every new trip.
Refunds and PAN-Aadhaar Linking
If you link PAN and Aadhaar at a later date, the lower TDS rate applies from the time of linking.
Refunds for previously deducted higher TDS rates (5%) are not permitted under government guidelines.
Checking Your TDS Deductions
Your deducted TDS is available in Form 26AS, which can be downloaded from the Income Tax website.
You will also receive TDS certificates (Form 16A) quarterly from Uber via in-app communication. Keep a copy for future reference.