Fiverr Community Forum

Why is fiverr cutting TDS at 5% when I am not in the category?

Hi, I just started my Fiverr career and completed my first order. My total income in the previous year is not crossing 5 lakhs then why is Fiverr taking 5% as TDS from me?! It is not acceptable.

If the e-commerce participant is a resident Individual or HUF and the gross sales exceed Rs. 5,00,000 in the financial year, TDS will be deducted at the rate of 1% on Gross Sales.

If the deductee does not provide the PAN or Aadhaar, then TDS shall be deducted at the rate of 5% irrespective of the gross sales amount.


That’s a question best directed at Fiverr CS.

We’re just Sellers and Buyers on the Forum.


Sellers from India have to fill tax information as well as fill the PAN. If you do not fill PAN then a TDS of 5% will be deducted otherwise it will be 1%. Upon filling the PAN no , it will automatically deduct 1% for the orders after filling the PAN details.

You can also check this.


Also, I contacted CS with the similar concern, The last date to add PAN number was 25th April, 2021, then only you can get reduced TDS deduction i.e. 1%. Adding PAN after 25th will result in 5% deduction no matter what. The only response I got from CS is to reach out to your tax advisor in India.