TDS Deduction

Please request the Partner send us a screenshot first. 

• TDS is deducted under Income Tax Law (Section 194-O).
• TDS (0.1% of the invoice amount if PAN is available & 5% of the invoice amount if PAN is not available or PAN and Aadhaar is not linked)  is deducted from every job for every partner.
• If Partner's yearly income is less than Rs 5 lakh  then Partner can claim TDS  refund by filing ITR 
• If Partner has not linked his Adhaar-PAN earlier and links it later in the year then Partner can claim the excess TDS amount by filing ITR.

TDS (On Incentive/SME Revisit Payment/Referral Payment)

• TDS will be deducted on any kind of Incentive/MG Payout, Referral Payment given via Payout.
• TDS will be deducted via Payout on the amount given other than customer Payment.
• UC will not deduct TDS on incentive amount upto Rs 20,000 in any financial year. If in case Incentive amount exceeds Rs 20,000 then itself UC will deduct TDS from Partners payout .
• IF PAN Not Available/Aadhaar-PAN not linked then 20%  - IF PAN Available then 10%  .
• .Example: If  Partner has earned Rs 30,000 of incentive in any financial year then recovery will be done for  10% of Rs 30,000(=Rs 3000)  else  20%(Rs 6000) deduction will be done from the incentive Payout.

If Partner claims to have linked Adhaar and PAN and still 5% TDS is getting deducted then 

 Go to Logs>>Verification : On this dashboard we will get to see remarks if PAN and Adhaar is not linked , in that case Partner must have linked some other PAN with Adhaar and Provided us an Incorrect PAN, Please ask Partner to  get his updated PAN uploaded from Menu section in the App and can claim TDS deducted by filing ITR.

Q:What to convey when Partner Enquires about Form 16 ?

A: Form 16 is nothing but TDS Certificate for which Follow TDS Certificate SOP

Q: Why UC is deduction TDS from Partners when GOVT of India has increased tax deduction limit to Rs 12 lakh and 75 thousand . 

A: Limit of tax deduction of  Rs 12 lakh and 75 thousand is only for full time employees working with a fixed salary, however Partners are working as a freelancers who are not an employee of Urbancompany hence for them TDS deduction limit on earning is Rs 5 lakhs. 

Tagging: 1.2 Money - Payout Issue>> payout deduction