Withholding tax rate reduction changes deduction-at-source obligations, lowering the statutory rate for specified payments. The amendment substitutes the words 'five per cent.' with 'two per cent.' in section 194DA of the Income-tax Act, effective from the 1st day of October, 2024, thereby reducing the rate at which tax is to be deducted at source under that provision and changing the payer's deduction obligation accordingly.