Gig workers turn to tax filing for refunds, credit

India's gig workers are increasingly relying on tax filing services integrated into their earnings platforms. Often, 1% of their payouts is deducted as tax at source, and this can lead to substantial refunds for those earning below the taxable threshold. Platforms like ClearTax, Swiggy, Eternal, Zepto and Delhivery are collaborating with gig workers to simplify the tax-filing process.

ClearTax reported that filings through its platform increased from 2.5 lakh in FY2022-23 to 5.5 lakh in FY2023-24 and up to 11 lakh in FY2025-26. The majority of these workers have income below the taxable threshold, making them eligible for refunds. One worker even received a refund of Rs 5.4 lakh for several income sources.

For these workers, filing a tax return provides more than just a refund. It creates a formal financial record that may assist in securing credit. Some workers file tax returns before seeking employment in West Asia, where this documentation can support visa applications.

Eternal, operating Zomato and Blinkit, facilitated tax return filing for 2.1 lakh delivery partners for FY2025-26, resulting in Rs 33.6 crore in refunds. Swiggy reported over 50,000 food-delivery and Instamart partners filing returns, generating Rs 6.5 crore in refund claims. Zepto registered 30,895 filings resulting in claims of over Rs 4.9 crore, while Meesho's Valmo counted around 10,000 partners initiating the process, claiming nearly Rs 2 crore.

While these numbers provide insight into the growing adoption of tax filing services, the figures are not directly comparable as they represent different metrics. Balaji Parthasarathy, a former professor at IIIT-Bangalore, notes that the expansion of these services is a step towards financial inclusion, but cautions that the impact may vary.