How TaxSpanner and KarmaLife Helped Delivery Agents and Mobility Platform Drivers Claim Tax Refunds

New Delhi [India] September 26: In a groundbreaking move, TaxSpanner and KarmaLife have partnered to streamline the tax refund process for gig workers associated with major delivery and mobility platforms. This collaboration aims to simplify the recovery of Tax Deducted at Source (TDS) by gig platforms, typically at the rate of 1-2% of worker earnings, for an emerging worker segment estimated to reach 30 million by the end of the decade.

Launched in July 2024, the service has already reached over 10,000 gig workers and seen a 98% filing-to-refund rate with an average refund value of nearly Rs 4000, which constituted a quarter of the average gig worker’s monthly take-home earnings. The solution combines a self-serve digital data validation flow with on-call assistance to enable quick tax filings and refund processing with minimal documentation and maximum time efficiency. KarmaLife’s existing userbase and employer data integrations enable access to gig workers and their consented relevant data, whereas TaxSpanner’s ERI status facilitates linkage to the IT portal and its certified tax filing experts versed in major regional languages.

Gig workers are notoriously time-constrained and weary of what is perceived to be a cumbersome tax filing process. A majority remain unaware of the opportunity to claim refunds and are not even registered with the Income Tax Department. Those who file taxes typically pay arbitrary and exorbitant fees to financial intermediaries and small accountants. This partnership offers an affordable, optimised, transparent and secure solution for these workers to comply with Government requirements and reclaim a significant portion of their income. It also helps educate contractual workers by demystifying the tax process with a simpler presumptive income-based tax calculation (under sections AD, ADA and AE of the IT Act), which applies specifically to them and empowers them to control their finances.