Tax Compliance & TDS Information
Clear and transparent guidelines on statutory deductions, withholding tax, and member tax filing compliance.
1. Tax Deducted at Source (TDS — 5%)
In accordance with the Indian Income Tax Act (Section 194H governing commission, brokerage, and direct-selling earnings), a mandatory 5% Tax Deducted at Source (TDS) is deducted from all gross withdrawal requests for PAN-verified members.
2. PAN Card Requirement for Lower Withholding
Providing a valid Permanent Account Number (PAN) during KYC verification ensures the standard 5% TDS rate. In the absence of a verified PAN, statutory higher withholding provisions (up to 20% under Section 206AA) may apply by law.
3. Withdrawal Deduction Tiers (KYC-Based)
Withdrawal deductions depend on your KYC verification status. Completing KYC unlocks the standard 10% deduction tier:
| Component | KYC-Approved Member | Non-KYC Member |
|---|---|---|
| Statutory TDS | 5% | 10% |
| Admin & Network Fee | 5% | 10% |
| Net Payout to Member | 90% | 80% |
Complete your KYC verification from the member panel to permanently reduce your total deduction from 20% to 10% on every withdrawal.
4. Annual TDS Certificate (Form 16A)
Quarterly TDS returns are filed with the income tax department. Members can view their tax credit reflected in their Annual Information Statement (AIS) and Form 26AS using their registered PAN on the government tax portal.