Attention Uber Or Ola Drivers! Get Your Taxes In Order
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The question what taxes do cab drivers pay is being asked very frequently these days. Why? Because with the advent of Uber and Ola, every other person is opting to become a taxi driver. The ride-sharing companies are not only transforming the way the country moves but also how people work and pay their taxes.
As per Uber rules, every driver that works from them is self-employed, which means they are obligated to pay their own taxes like any other business owners and self-employed person. Every taxi driver for Uber has to submit a self-assessment for the previous financial year as their Tax Return to report their income. While filing their ITR, a taxi driver can claim:
- Mileage claim: For drivers who use their personal car as a taxi, they can claim the miles that are driven for work. The best method is to keep a record of all the miles.
- Car purchase: For drivers who purchase a new car to drive a taxi, you can claim the entire cost as tax relief. But the whole amount can’t be claimed in one financial year. Only a part of the car’s price can be in one tax year; the rest is included in the following ones.
6 Comments
To pay the taxes as a self-employed person, you need to have expert knowledge of the field. Since, as new Uber drivers, that is highly unlikely, we help you deal with it. With hundreds of clients under our belt, our professionals know how to get the maximum benefit while filing ITR as self-employed workers. We stay on top of your taxes while you focus on work. With the new GST structure in place, we have made the process of GST Registration and paying your taxes even simpler!
Thank you VakilSearch for the informative comment. Yes, paying taxes is indeed a difficult procedure as there are too much paper works involved. Ola or Uber drivers will find it difficult to get all these muddling works done right. It is a great initiative from your side to offer assistance for us. We will surely recommend your services to all drivers.
An excellently penned article. It covers in a small gist the main points an Uber driver should know about paying taxes. Just one more point I’d like to add on is that drivers should register as self-employed workers as soon as they start working for the firm!
The one thing the post skipped over was that if a driver claims tax relief on mileage, they can claim the cost, servicing, and insurance of the car. When it comes to filing ITR, an Uber driver can only choose one. Otherwise, the article explains everything, briefly, but really well.
I started driving for Uber two years back. I recently bought a new car that I keep just as a taxi. With the help of Vakil Search, on my income tax self-assessment, I could claim as deductible expense the price of the car, fuel, servicing, repair, and even insurance!
I’d like to thank you for the post first. The article was precisely the information I was looking for as a recently started driving a taxi. I took your advice and booked the first consultation with VakilSearch. So far, they have been immensely helpful and answered all my questions related to GST.