India TDS Rates for FY 2018-19 and AY 2019-20
Tax deducted at source (TDS) is a mechanism under which the person making a specified payment deducts income tax and deposits it with the government. This reference explains the rates and compliance rules applicable to financial year 2018-19 (1 April 2018 to 31 March 2019), assessment year 2019-20. Historical rates must not be applied automatically to payments made today.
Meaning of TDS and the governing law
Chapter XVII-B of the Income-tax Act, 1961 contains the principal tax deduction at source provisions relevant to FY 2018-19. A deductor is the person responsible for deducting tax; a deductee is the recipient whose income is subject to deduction. Tax withheld is ordinarily available as a credit against the deductee's final income-tax liability, subject to reconciliation and statutory conditions.
India TDS rates for FY 2018-19 (AY 2019-20)
The following rates are a historical summary of frequently used provisions. Thresholds and rates are subject to statutory exclusions, payer-category requirements, declarations, exemptions and applicable surcharge or cess.
| Section | Nature of payment | Historical threshold / condition | FY 2018-19 rate |
|---|---|---|---|
| 192 | Salary | Applicable basic exemption and estimated annual salary | Average rate based on estimated salary income |
| 192A | Taxable premature EPF withdrawal | Rs. 50,000 | 10% |
| 193 | Interest on securities | Depends on security and exemption | 10% generally |
| 194 | Certain dividends | Subject to specific conditions | 10% where applicable; domestic company dividends generally subject to DDT regime in FY 2018-19 |
| 194A | Interest other than interest on securities | Rs. 10,000 for bank/post-office specified deposits; Rs. 50,000 for resident senior citizens; Rs. 5,000 other cases | 10% |
| 194B | Lottery and specified winnings | More than Rs. 10,000 | 30% |
| 194BB | Horse-race winnings | More than Rs. 10,000 | 30% |
| 194C | Payments to resident contractors | Rs. 30,000 single payment or Rs. 1,00,000 aggregate in year | 1% if payee individual/HUF; 2% otherwise |
| 194D | Insurance commission | Rs. 15,000 | 5% for non-company payees; 10% for domestic companies |
| 194DA | Taxable life-insurance policy proceeds | Aggregate payment Rs. 1,00,000 or more | 1% of taxable payment under law then applicable |
| 194E | Payments to non-resident sportspersons or sports associations | No general threshold | 20% plus applicable additions |
| 194EE | National Savings Scheme payments | Rs. 2,500 | 10% |
| 194F | Repurchase of units by mutual funds/UTI (historical provision) | No general threshold | 20% where applicable |
| 194G | Lottery-ticket commission | Rs. 15,000 | 5% |
| 194H | Commission or brokerage | Rs. 15,000 | 5% |
| 194-I | Rent of land, building, furniture or fittings | Rs. 1,80,000 in financial year | 10% |
| 194-I | Rent of plant, machinery or equipment | Rs. 1,80,000 in financial year | 2% |
| 194-IA | Transfer of immovable property other than specified agricultural land | Consideration Rs. 50,00,000 or more | 1% |
| 194-IB | Rent paid by certain individuals/HUFs | More than Rs. 50,000 per month | 5% |
| 194J | Professional fees, technical services and other covered payments | Rs. 30,000 for relevant categories | 10% generally; 2% for call-centre business payments |
| 194LA | Compensation for acquisition of certain immovable property | Rs. 2,50,000 in financial year | 10% |
| 194LB | Specified interest from infrastructure debt fund to non-resident | As prescribed | 5% generally |
| 195 | Sum chargeable to tax paid to a non-resident | No universal minimum threshold | Rates in force, subject to treaty and applicable provisions |
Important distinction: Section 194-I applies to certain rent payments by covered deductors, while Section 194-IB applied to qualifying individuals and HUFs paying rent above Rs. 50,000 per month. Section 194-IA concerns purchases from resident sellers; a property purchase from a non-resident seller generally requires examination under Section 195, not automatic application of the 1% rule.
Salary, provident fund, bank interest and contractor payments
Section 192 - salaries
The employer estimates the employee's taxable salary for the year and deducts tax at the applicable average income-tax rate. For the historical slab rates, see Income tax slabs for FY 2018-19 and AY 2019-20.
Section 192A - provident fund
Certain taxable early withdrawals from recognised provident funds were subject to 10% TDS where the relevant withdrawal threshold was met, subject to applicable exemptions and documentation.
Section 194A - interest
For FY 2018-19, the general bank deposit interest threshold was Rs. 10,000, with a higher Rs. 50,000 threshold for eligible resident senior citizens under the then-applicable provision. The Rs. 5,000 threshold generally applied in other specified cases. Certain declarations in Form 15G or Form 15H could prevent deduction if validly furnished.
Section 194C - contractors
For covered resident contractor payments, the rate was 1% where the recipient was an individual or HUF and 2% for other recipients. The Rs. 30,000 single-payment and Rs. 1,00,000 annual aggregate tests applied, with special rules for qualifying transport operators.
TDS on sale of immovable property - Section 194-IA
For FY 2018-19, a buyer purchasing specified immovable property from a resident seller generally deducted 1% of consideration where the consideration was Rs. 50 lakh or more. Agricultural land excluded by the statutory definition was not covered. The buyer did not ordinarily need a TAN solely for Section 194-IA compliance.
The buyer generally reported and deposited the tax using Form 26QB within 30 days from the end of the month of deduction, and issued Form 16B within the prescribed period. This differs from the ordinary monthly deposit rule. For a non-resident seller, examine Section 195 and any lower-deduction certificate instead.
For historical transactions involving multiple buyers or sellers, assess each transaction and the law applicable at the time. Later amendments have expressly addressed aggregation of consideration for multiple buyers or sellers; they should not be retrospectively assumed to have applied in FY 2018-19.
TDS deposit deadlines
For most non-government deductors under the historical framework, TDS deducted in April through February was generally deposited by the 7th of the following month. For tax deducted in March, the general due date was 30 April. Different provisions applied to government deductors, special quarterly arrangements and forms such as 26QB.
| Month of deduction | General deposit due date |
|---|---|
| April to February | 7th day of the following month |
| March | 30 April |
| Section 194-IA property TDS | Form 26QB generally within 30 days from month-end |
TDS statements, certificates and filing deadlines
| Form | Purpose |
|---|---|
| 24Q | Quarterly statement for salary TDS |
| 26Q | Quarterly statement for many non-salary payments to residents |
| 27Q | Quarterly statement for relevant payments to non-residents |
| 26QB | Challan-cum-statement for property transactions under Section 194-IA |
| 16 | Salary TDS certificate |
| 16A | Certificate for many non-salary deductions |
| 16B | Property TDS certificate under Section 194-IA |
The standard quarterly TDS statement deadlines for the relevant historical period were generally 31 July (April-June), 31 October (July-September), 31 January (October-December) and 31 May (January-March). Check extensions and exceptions for the specific period. Filing and payment services are available through the Income Tax e-Filing portal and the Protean tax information services.
PAN, TAN and higher deduction
Section 206AA generally required deduction at the higher of the applicable statutory rate, rates in force or 20% where a required PAN was not furnished, subject to specific exceptions. Special rules applied to certain non-residents and to particular provisions. A deductor required to obtain a Tax Deduction and Collection Account Number (TAN) generally quoted it in challans, certificates and statements; certain property and rent deduction provisions provided exceptions.
Interest, late fees and consequences of non-compliance
Section 201(1A) generally imposed interest at 1% per month or part of a month for failure to deduct tax when required, and 1.5% per month or part of a month where tax was deducted but not deposited on time, subject to statutory computation rules. Section 234E provided a late-filing fee of Rs. 200 per day for TDS statements, capped at the TDS amount, while Section 271H and other provisions could impose additional consequences in relevant cases.
Credit and refund of excess TDS
A taxpayer whose final tax liability is lower than the eligible TDS credit may claim the excess through the applicable income-tax return, subject to verification. Reconcile deductions against Form 26AS and available tax records before filing.
Using this historical article for a current payment
Rates and thresholds were subsequently revised, including for certain interest, rent, commission, professional fees, insurance proceeds and property-related payments. The Income-tax Act, 2025 introduced a new statutory framework from 1 April 2026, with transitional provisions for earlier years. Before making a deduction in 2026 or later, confirm the applicable tax year, current legislation, notification, relevant treaty and prescribed forms; the FY 2018-19 table is not a current-rate schedule.
Official legal and compliance resources
- Income-tax Act, 1961 - official legislative reference
- Income Tax Department - e-Filing and taxpayer services
- Income Tax Department - circulars, notifications and guidance
- India Code - official legislation database
This article provides general historical information, not a substitute for transaction-specific professional advice. Rates, exemptions and due dates should be verified against the law and notifications applicable to the relevant period.