In this article, we are going to discuss about Zomato and Swiggy TDS Deduction and Refund Process. In Which section TDS is deducted for those who are riders of Zomato and Swiggy or those who are restaurant partners and what are the rules if they want to get a refund of their TDS amount. And we will know what rules, regulations or procedures are there for that.
Swiggy and Zomato are online food delivery platforms where restaurants provide home delivery of food to the individual. And these services are offered by cloud kitchen.
Zomato and Swiggy TDS Deduction for Riders
The riders or partners working under Zomato and Swiggy work on a contractual basis and no rider is treated as a full-time employee.
- Those riders who work on contractual basis, their TDS is deducted under section 194C.
- If the person provides a PAN card which should be linked to his Aadhar card then 1% TDS is deducted and the limit of TDS is provided which is up to ₹ 30000.
- If you have provided your PAN card but it is not linked to an Aadhaar card and that detail is not available in the database of Zomato or Swiggy, then TDS increases by 20% and your TDS will be deducted at the rate of 20%.
- If you have not provided your PAN card number then you cannot claim for a refund on Swiggy & Zomato website.
- Therefore, keep this in mind that you must provide your PAN card number to the company so that you can claim the refund.
Zomato and Swiggy TDS Deduction for Restaurant Partner
- Those who work as partners on Zomato and Swiggy, their TDS is deducted up to one percent under section 194(O).
- It is important to keep in mind that whatever company you are with, you should always provide your PAN card number to it, only then it is going to deduct your TDS amount and it will deposit the amount to the government only on your PAN card number and only then you will be able to claim it when your PAN card is provided
Zomato and Swiggy TDS Refund Process
- If we talk about riders then they are individual persons, so if their total income in a year is less than Rs 5 lakh, then no tax is levied on them in India, so in this case, whatever TDS is deducted from the riders by Zomato and Swiggy, that entire TDS amount is refundable by the government. You need to File Income Tax Return every year to claim the TDS Refund.
- If we talk about business or restaurant, if you are running a proprietorship firm, then the same rules as for individuals are applicable to you.
- But if you have a partnership firm or company basis then TDS depends on your company’s legal identity.
- If your tax liability is less in comparison to the TDS amount, then you will get a refund of the TDS amount.