This article includes answers to frequently asked questions we receive regarding the tax withholding process for Udemy instructors who reside in India and who are subject to Indian tax laws
Table of contents
- How does tax withholding work for Udemy's Indian instructors?
- How can instructors request retrospective amendments to their Tax IDs?
- What is the expected timeline for corrections?
How does tax withholding work for Udemy's Indian instructors?
Under Section 192-O of the Indian Income Tax Law, we are required to withhold taxes at specified rates from payments made to Indian instructors who reside in India and who are subject to Indian tax laws. Please note that Udemy is currently developing an automated system to facilitate this tax withholding. Until this system is in place, Udemy, as a goodwill gesture, is covering the applicable withholding tax amounts on behalf of instructors and paying these directly to the tax authorities. This means we are not currently deducting these taxes from instructors' payouts. We will begin withholding taxes directly from instructors' payouts once our automated system is operational.
How can instructors request retrospective amendments to their Tax IDs?
Please note that Udemy is required to report instructor payouts based on the Tax IDs provided during onboarding via the Payout & Tax Settings page. Instructors must ensure they provide the correct Tax ID during onboarding or update it on the Udemy Tax Portal if it changes. Udemy is not responsible for making retrospective amendments to our tax reporting due to incorrect or false Tax IDs submitted in the past.
If it is absolutely necessary to correct a Tax ID for prior periods, the instructor must update their profile on the Udemy Tax Portal through the Payout and Tax Settings section of their Udemy account and notify our Instructor Support Team about the need for retrospective changes. Once we receive the notification, we will begin the correction process, which involves revising previous tax reports to the Indian tax authorities. We appreciate your understanding as this process requires significant time, effort, and resources to ensure accuracy and compliance.
What is the expected timeline for corrections?
As mentioned above, requests for correction of Tax IDs from instructors require us to revise our previous tax reports to the Indian tax authorities. This effort includes processing corrections to ensure they are reflected in your Form 26AS. Typically, the entire process should take about one month to complete, starting from when our support team has confirmed that the corrections will be processed.