A Complete Guide on TDS Refund for Delivery Partners of Swiggy and Zomato
A Complete Guide on TDS Refund for Delivery Partners of Swiggy and Zomato
Blog Article
In India, gig workers, for example delivery partners on platforms like Swiggy and Zomato, are central to the promise of quick, dependable service. Such workers face issues when it comes to understanding tax matters, especially concerning Tax Deducted At Source (TDS). As a delivery partner with Swiggy or Zomato, it is crucial to find out how TDS works vis a vis your refund eligibility and application. In this post, I will explain everything you need to know about TDS refund for swiggy and zomato delivery patners and eligibility so that you get what is rightfully owed to you.
What is TDS (Tax Deducted at Source)?
TDS is the diminishing balance method of taxation in which a certain portion of tax is taken from your income before payments are made to you by your employer or any such entity. Service partners for a company such as Swiggy or Zomato are given TDS salary by the platform which means the payment is conditioned on a fraction of earnings being subtracted beforehand.
For Swiggy and Zomato, as well as other delivery applications, TDS is charged on overall income and delivery earnings, tips as well as incentives are included. That being said, if your TDS deductions fall below your tax responsibility, you are able to claim a refund.
Conditions For TDS Refund Eligibility for Delivery Partners
You may be eligible for a TDS refund if the rules defined below are met:
1. Income is Below Taxable Limit: Titled responsible income, this condition states that as long as the person earning holds an income less than Rs. 2.5 lakh annually, which serves as the base exemption period, you qualify for a refund. Under these conditions, the TDS that is deducted shall always be higher than the actual tax liability.
2. Incorrect TDS Deduction: A person is free to claim any excess tax’s been deducted claiming they have been brackets at a higher rate than required.
3. No Taxable Income: If you derive no income from your job, but TDS was deducted due to your association with Swiggy or Zomato, you could also claim the refund. There is no reason why you should be taxed if your total annual income is within the exemption limit.
4. Multiple Sources of Income: In case there is more than one source of income and TDS is deducted at every source, then you are most likely to get some kind of refund if the aggregate TDS is more than the tax threshold.
Steps to Apply for TDS Refund
1. Get Form 16 or Form 16A: Delivery platforms like Swiggy and Zomato have the obligation of providing a Form 16 or Form 16A detailing the TDS deductions pertaining to the previous financial year. This document will assist you to determine your tax obligations.
2. File Income Tax Returns (ITR): To receive TDS refund, you should file income tax return for the particular fiscal year. In your ITR, you must include the TDS done by Swiggy or Zomato along with other sources of income earned.
3. Provide Correct Details: Double check all relevant entries, such as income, deductions and TDS claimed, are correctly stated in your ITR. Pay special attention to the TDS details captured in Form 26AS and ensure that they are in agreement with the TDS details submitted. Remember that Form 26AS is a consolidated tax statement available at the Income Tax Department's Portal.
4. Check for Refund Status: After processing your ITR, the Income Tax Department will also process your refund, which will be credited to the bank account specified in your records. The status of the refund can be checked through the Income Tax e-filing portal.
5. Timely Filing: To receive a refund, you need to ensure that your tax return is filed prior to the deadline. Failure to submit before the deadline means you will forfeit the refund for that year.
Tax Legislation for Gig Economy Workers
Boarding up on the delivery partners, gig economy workers are generally classified as self employed and are subjected to taxation under the Indian Income TaxAct. Gig economy workers do not receive any form of tax incentive specifically designed with them in mind, meaning they face the same tax regulations as other self employed individuals.
Gig workers are able to claim deductions for components such as 80C (investment) and 80D (insurance premiums) as well as claim business-related expenses such as vehicle maintenance and fuel. It is very important for delivery partners to keep track of their income and expenditures to claim appropriate deductions and minimize their taxable income.
Practical Steps for Delivery Partners
1. Maintain Records of Earnings and Deductions: Earning statements with TDS deductions should be maintained. Swiggy and Zomato also provide statements on a monthly or quarterly basis which serves as a good reference.
2. Verify Form 26AS: Check if the TDS done by Swiggy or Zomato is also shown in your Form 26AS. In case of any discrepancies, you must reach out to the platform to address them.
3. Claim Business Expense Deductions: In this regard, vehicle maintenance, fuel, mobile bills, delivery to the customer, among others, can be claimed as business expenses. So long as proper receipts are provided.
4. Timeliness in Return Filing: If filing is done late then there is a risk of incurring a penalty or losing the ability to claim a refund. To avoid these challenges, file as early as you can before the deadline.
5. Seek Professional Help: For assistance with filing taxes, making deductions, or claiming a TDS refund, it is often more efficient to consult a professional if there is uncertainty about any aspect of tax.
How Easy Return Can Help You
With regards to tax filing and TDS Refund, gig economy workers like the delivery partners of Swiggy and Zomato have unique problems that need tailored solutions, and that is where Easy Return comes in. Our experts deeply understand the tax regulations and are well equipped to help you get the maximum refund possible.
If you do not understand the way TDS is calculated, do not know how to fill out Form 16/16A, or require assistance in filing your income tax return, do not worry, we are here to help you with every step. We aid you in filing your taxes so that you are not missing out on the deductions you deserve and receive the refunds you are entitled to in a timely manner.
Taxes can be very complicated, and as a working professional, they should not have to be something you focus on. Call Easy Return today, take a step back from taxes and focus on providing great service to your customers while we sort out everything else.