Tax deduction at source under section 194Q now attracts a reduced withholding rate as adjusted by section 206AA. Amendment adjusts the operation of section 206AA by inserting a proviso that, where tax is required to be deducted under section 194Q, the clause (iii) withholding rate in section 206AA is to be treated as a lower rate; effective from 1 July 2021, this limits the higher non filer withholding consequence in transactions subject to section 194Q.