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<h1>Higher TDS rate under section 206AA limited for e commerce and buyer deductions, lowering the withholding rate in specified transactions.</h1> Higher rate under section 206AA is excepted and reduced where tax is required to be deducted by an e commerce operator under the e commerce deduction mechanism or by a buyer under the buyer deduction mechanism; in those specified scenarios the statutory higher withholding rate is lowered for tax deduction at source purposes.