Companion income in India is taxable like any freelance or professional income. This guide is a plain-language overview of what GoWith companions need to know: what tax gets deducted before payout, GST implications, how to file your annual return, and what records to keep. It's not a substitute for a chartered accountant — talk to one for anything above the basics.
How your earnings are classified
Companion earnings on GoWith are treated as income from profession under Indian tax law. This puts them in the same bucket as freelance consulting, tutoring, or design work — not salary.
This matters because it changes which ITR form you file, how deductions work, and whether GST applies.
Is TDS deducted?
Under Section 194O of the Income Tax Act, e-commerce operators are required to deduct 1% TDS on payments to e-commerce participants (which includes marketplace hosts and freelancers). GoWith deducts 1% TDS on your gross earnings before payout.
You'll see the TDS amount on your monthly earnings statement in the Host dashboard. It's credited to your PAN and shows up in your Form 26AS — you can claim it back or offset it against your tax liability at year-end.
When does GST kick in?
GST registration becomes mandatory once your gross annual turnover exceeds ₹20 lakh (₹10 lakh in special-category states). Below that threshold, you don't need to register or charge GST — GoWith invoices bookers directly and remits any applicable GST separately.
If your earnings cross the threshold, you'll need to register for GST, obtain a GSTIN, and update your Host profile with it. GoWith will then start including GST on your invoices.
Filing your annual return
As a companion earning professional income, you'll file ITR-3 or ITR-4 depending on whether you use presumptive taxation (Section 44ADA).
Section 44ADA presumptive taxation
Available if your gross professional receipts are under ₹50 lakh annually. Under this scheme, you declare 50% of your gross receipts as taxable income — no need to maintain detailed books or claim individual expenses. Simplest option for most companions.
Regular assessment
If you don't opt for presumptive taxation, you'll declare actual income minus actual expenses (travel, phone bills for work, professional development, etc.). More paperwork, but potentially lower taxable income if your expenses are substantial.
What records to keep
- Your GoWith monthly earnings statements (available in Host dashboard).
- Form 26AS from the Income Tax portal — shows TDS deducted against your PAN.
- Receipts for any work-related expenses (transport, phone, clothing bought specifically for host work).
- Bank statements showing GoWith payouts landing weekly.
- GST invoices (if registered).
Advance tax
If your total tax liability for the year exceeds ₹10,000 (after TDS credits), you're required to pay advance tax in four quarterly installments — 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March.
Miss the deadlines and you'll pay interest under Sections 234B and 234C. A quick chat with a CA once a quarter avoids this.
“Tax is not scary. Missing tax deadlines is scary. Set a reminder every quarter.”
— Practical advice
Getting help
Any CA can help file freelance ITR — expect ₹2,000–₹5,000 for basic filing. If your income is under ₹6 lakh, you can file yourself on the Income Tax portal using ITR-4 with presumptive taxation. Take an hour once a year.
Nothing in this article is legal or financial advice. Talk to a CA for your specific situation.