<h1>Amendments to Section 194C of Income Tax Act: New TDS Rates for Works Contracts, Including Advertising and Manufacturing.</h1> The proposed amendments to Section 194C of the Income Tax Act, 1961, under Clause 60 of the Finance (No. 2) Bill, 2009, introduce significant changes in the Tax Deduction at Source (TDS) provisions for works contracts. The new provisions clarify TDS applicability on manufacturing or supplying products using materials from customers, with specific rates outlined for different contract types. For advertising contracts, a 1% TDS rate applies, while other contracts have a 2% rate. The exemption threshold remains unchanged at twenty thousand rupees, with deductions required if annual payments exceed fifty thousand rupees. These changes aim to refine and expand TDS coverage.