# Sections 194-IB & 194M — Personal Payments by Individuals / HUFs
These sections target payers (typically Individuals & HUFs) who do NOT have a business large enough to be covered under 194C, 194-I, or 194J in the normal course.
## Acronym — 'HIJACR'
This is the shorthand for persons NOT required to deduct TDS u/s 194C/194-I/194J under the standard provisions:
- Includes Individuals & HUFs not carrying on PGBP business, OR
- Carrying on PGBP business but with turnover ≤ ₹1 Cr (business) / Gross Receipts ≤ ₹50 lacs (profession) in the preceding year (i.e., not subject to audit u/s 44AB).
## Section 194-IB — TDS on Rent by Non-HIJACR
- Applies when the rent exceeds ₹50,000 per month (or part thereof), AND
- Payer is a Non-HIJACR Assessee — i.e., an Individual/HUF NOT having significant PGBP income (those not covered under 194-I).
- Rate: 5% (refer rate summary).
## Section 194M — TDS on Personal Payments
- Applies when an Individual / HUF (who is non-HIJACR) pays an aggregate amount exceeding ₹50 lakhs during the year for:
- Contract work (which would otherwise fall under 194C)
- Commission (otherwise under 194H)
- Professional services (otherwise under 194J — FPS)
- Also applies where the assessee IS HIJACR (i.e., covered by 194C/J), but the payment is made for personal purposes AND the amount exceeds ₹50 lakhs.
- The ₹50 lakhs limit is checked payee-wise.
- Rate: 5% (refer rate summary).
## Key Distinction — 194C vs 194M
- 194C applies to business payments by sufficiently large payers.
- 194M captures personal/large payments by small payers, ensuring high-value transactions are reported.
## Section 194DA — Maturity of LIP
- TDS u/s 194DA is applicable only if the maturity proceeds are NOT exempt u/s 10(10D).
- For Sec 10(10D), one must check the premium-to-sum-assured cap (10% or 15% depending on whether the insured is a disabled person etc.) — the maturity is exempt only if premium does not exceed this cap.
- Threshold for TDS: ₹1,00,000 or more.