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<h1>Withholding tax rate reduction under section 194DA lowers payer withholding obligations and changes statutory wording for deductions.</h1> The Finance Act, 2016 amends section 194DA of the Income-tax Act by substituting the words 'two per cent.' with the words 'one per cent.', thereby changing the statutory rate of deduction at source and altering payers' withholding obligations for the specified payments.