Affiliates Tax Withholding & Reporting Terms

Module: Utsav Affiliates™ (Tax Compliance)
Document Type: Policy
Trademark: Utsav Affiliates™ is a trademark of MyMahotsav Futuretech Ltd
Effective Date: 24th February 2026
Version: 1.0

Part A: Plain English Summary #

Understanding Your Tax Obligations #

As an independent affiliate, you’re responsible for your own taxes. This policy explains what tax information we need from you and what you can expect regarding tax reporting.

The Simple Truth #

• You’re Self-Employed: Affiliate income is generally considered self-employment income. You’re responsible for paying your own taxes, including income tax and self-employment tax.

• We Report to Tax Authorities: If you earn over certain thresholds, we’re required to report your earnings to tax authorities and may issue tax forms.

• We Need Your Tax Information: To comply with reporting requirements, we need valid tax identification information from you (W-9 for US affiliates, W-8BEN for international, PAN for India).

• We Don’t Withhold Taxes: Unless required by law, we don’t withhold taxes from your commissions—you’re responsible for making estimated tax payments.

• Consult a Tax Professional: We can’t provide tax advice. Please consult with a qualified tax professional about your specific situation.

Part B: Tax Compliance Provisions #

1. TAX STATUS OF AFFILIATES #

1.1 Affiliates are independent contractors, not employees. Income earned through the Utsav Affiliates™ Program is generally classified as self-employment income, not wages.

1.2 No Tax Withholding: MyMahotsav does not withhold income or employment taxes from affiliate commissions, except where required by applicable law.

1.3 Estimated Taxes: Affiliates are responsible for making estimated tax payments throughout the year as required by their local tax authorities.

2. TAX INFORMATION REQUIREMENTS #

2.1 To participate in the Program and receive payments, Affiliates must provide valid tax identification information:

2.2 Affiliates must ensure their tax information is accurate, current, and complete. Failure to provide valid tax information may result in payment holds or withholding at the maximum rate required by law.

2.3 Affiliates agree to promptly update their tax information whenever it changes.

3. TAX REPORTING THRESHOLDS #

3.1 United States: For US affiliates, MyMahotsav is required to file Form 1099-NEC (Nonemployee Compensation) with the IRS if total payments to an affiliate during the calendar year equal or exceed $600.

3.2 India: For Indian affiliates, MyMahotsav may be required to:

• Deduct Tax at Source (TDS) under applicable provisions

• Issue Form 16A or other tax certificates

• Report payments as required by the Income Tax Act

3.3 Other Jurisdictions: MyMahotsav will comply with tax reporting and withholding requirements in other jurisdictions as required by law.

4. TAX WITHHOLDING #

4.1 Voluntary Withholding: In some jurisdictions, MyMahotsav may offer Affiliates the option to elect voluntary tax withholding. This is not available in all regions.

4.2 Mandatory Withholding: If required by applicable law, MyMahotsav will deduct and withhold taxes from affiliate commissions and remit them to the appropriate tax authorities.

4.3 Treaty Benefits: Non-US affiliates may be eligible for reduced withholding rates under applicable tax treaties. To claim treaty benefits, affiliates must provide appropriate documentation (e.g., Form W-8BEN claiming treaty benefits).

5. AFFILIATE TAX RESPONSIBILITIES #

5.1 Affiliates are solely responsible for:

• Reporting all affiliate income on their tax returns

• Paying all applicable taxes, including income tax and self-employment tax

• Making estimated tax payments where required

• Maintaining records to substantiate their income and expenses

• Complying with all tax laws in their jurisdiction

5.2 Deductible Expenses: Affiliates may be eligible to deduct ordinary and necessary business expenses related to their affiliate activities, such as:

• Website hosting and domain fees

• Marketing and advertising costs

• Software subscriptions

• Professional development

• Home office expenses (where applicable)

5.3 Affiliates should consult with qualified tax professionals regarding their specific situation.

6. TAX DOCUMENTS AND REPORTING #

6.1 Affiliates can access tax documents (where applicable) through their Affiliate Dashboard.

6.2 US Affiliates: Form 1099-NEC will be made available by January 31 of the following year for affiliates meeting the reporting threshold.

6.3 Indian Affiliates: TDS certificates will be provided as required by law.

6.4 Affiliates are responsible for downloading and retaining these documents for their tax records.

7. INTERNATIONAL AFFILIATES #

7.1 Affiliates located outside the country where MyMahotsav is based may be subject to different tax treatment.

7.2 By participating in the Program, international affiliates acknowledge that:

• They are responsible for understanding and complying with their local tax laws

• They may be required to obtain local tax registrations

• They may be subject to withholding taxes in their jurisdiction

8. DISCLAIMER #

8.1 NOTHING IN THIS POLICY CONSTITUTES TAX ADVICE. TAX LAWS ARE COMPLEX AND VARY BY JURISDICTION. AFFILIATES SHOULD CONSULT WITH QUALIFIED TAX PROFESSIONALS REGARDING THEIR SPECIFIC SITUATION.