TDS deductions for drivers
PAN-Aadhaar Linkage and TDS Rates
- 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.
How to Link PAN with Aadhaar
- Follow this step-by-step tutorial video: Link PAN with Aadhaar
- Note: Uber cannot link PAN and Aadhaar on your behalf.