How to claim TDS Refund for Swiggy & Zomato Delivery Partners
How to claim TDS Refund for Swiggy & Zomato Delivery Partners
Blog Article
In the gig economy sector, delivery partners from platforms like Swiggy and Zomato are critical in maintaining a speed service. These workers have a hard time tackling the complex world of taxation, especially with TDS (Tax Deduction at Source). If you are a delivery partner with Swiggy or Zomato, it is good practice to understand the working of TDS, if you’re eligible for a refund, and the steps needed to claim it. This blog post covers all the essential aspects regarding TDS refunds, eligibility, and the process so you do not lose out on money owed.
An Introduction to TDS (Tax Deducted at Source):
The term TDS refers to the portion of income tax payable by you that is deducted at the source/ by your employer or person paying you as a certain percentage is retained for taxation by your employer before releasing the amount to you. In this case, delivery partners with Swiggy and zamato, the platform where you work, deducts a certain amount considered as TDS from your earnings before remitting payment to you.
For Swiggy, Zomato, and any other delivery service, TDS is withheld on the entire revenue, which includes the delivery charge, tips, incentives, and other earnings. However, it is possible that the TTC that is withheld is less than the actual tax you owe. In these situations, you have the option to seek a refund.
Criteria for Considering TDS Refund for Swiggy & Zomato Delivery Partners
Under these specific criteria, you may qualify for a TDS refund for swiggy & Zomato delivery partner.
1. Income is Below Taxable Limit: Being a resident Indian, if your total annual generic income for a financial year is below the basic exemption limit currently standing at Rs. 2.5 lakh for individuals under 60 years of age, you may be eligible for a refund. In this case, the TDS in question withheld would be greater than your actual tax liability.
2. Incorrect TDS Deduction: If you have reason to believe that TDS was deducted using a rate higher than what is applicable for your situation, you have the right to claim a refund for the excess amount through your tax return.
3. Failure to Earn Taxable Income: Should your income be under the threshold, but TDS was cut because of ties with Swiggy or Zomato, you could claim a refund. No tax should be levied if your total annual income stays within the exemption limit.
4. Income From Multiple Avenues: With so many different payment opportunities to make money, there is the possibility of earning from more than one place. If you have more than one payment source and TDS applies to every payment from each source, you may qualify for a refund when the total TDS applies exceeds the liable tax.
How to Apply for TDS Refund
1. Receive Form 16 or Form 16A: Swiggy and Zomato are classified as delivery partners and must furnish Form 16 or Form 16A, documenting the TDS for the financial year in consideration. This form will allow you to know the amount of tax which was deducted.
2. Submit ITR: To receive TDS refund entitlement, you need to submit income tax return for the particular financial year. Along with other receipts earned, mention the TDS which has been deducted by Swiggy or Zomato for inclusion in your ITR.
3. Provide Correct Details: Please remember to include accurate information in your ITR, such as your income, deductions, and any TDS that has been deducted. Also, verify the TDS details in Form 26AS against the actual TDS deducted. Form 26AS is a comprehensive tax document statement accessible from the Income Tax Department’s website.
4. Check for Refund Status: After processing your ITR, the Income Tax Department will review it for any applicable refunds and will initiate a credit to your bank account. The status of your refund is available through the Income Tax e-filing portal.
5. Timely Filling: In order to receive your refund, you need to submit your tax return prior to the deadline. If you do not meet the deadline, you might forfeit your refund for that fiscal year.
Tax Regulation for the Gig Economy
Gig economy workers including delivery riders are usually viewed as self-employed, thus fall under the Indian Income Tax Act. Gig economy workers do not enjoy any special taxation privilege; hence are treated the same as other self-employed individuals.
However, gig workers can also receive tax deductions under section 80C and 80D, which pertain to provident fund contributions and insurance premium payments respectively. Moreover, they can deduct business expenses such as car repairs and fuel costs. To deduct his or her tax obligation as much as possible, delivery partners need to document all their income and expenses.
Practical Suggestions for Delivery Partners
1. Document All Income and Tax Deductions: Always document all payments disbursed to you and the TDS levied. Most contractors, such as Swiggy and Zomato, will offer statements at the end of each quarter or halfway through the game, so do check if these can serve as references.
2. Log Into Form 26AS: Don’t forget to check whether TDS levied by Swiggy or Zomato is shown on your Form 26AS. In case it does not, feel free to reach out to the platform and ask them to handle the correction.
3. Reduce Expenses from Income: As an independent contractor, you are allowed to reduce business expenses from your income. These will likely include some amount of vehicle repairs, fuel, mobile phone bills, and other expenses tied to facilitating delivery services. Always keep the receipts for these transactions.
4. Meet Filing Deadlines: Filing overdue returns is often associated with some form of punishment or automatic disqualification for a refund afterwards. To sidestep all these inconveniences, ensure that you do everything to file before the deadline.
5. Look for Professional Guidance: If you are in any way unclear about any matter regarding tax, seek guidance, as a professional can help you with tax filing, deductions, and tax deducted at source (TDS) refund claims.
What Easy Return Can Do for You
At Easy Return, we appreciate the complications that tax filing poses for the gig economy workers such as the delivery partners for Swiggy and Zomato. This entails TDS refunds as well. Our experts understand the tax regulations and know the loopholes, and solutions so that you receive the maximum refund possible.
We will guide you in all aspects of perplexity such as understanding how TDS is calculated, assisting you with your Form 16/16A, and even in filing your income tax return. We strive to make sure that every taxpayer’s rights are protected and help them receive their rightful refunds without delays and friction.
There is no need to focus on the complex issues of taxes when you are pursuing what you really want to – work. Reach out to Easy Return now, and let us take care of tax issues while you continue serving your customers.