Tax deductible at source has been made mandatory on the payments made for acquiring the rights of films and TV software, according to an amendment made in I T Act 1961 with effect from 13 July 2006.

The Film Producers Guild of India has been informed of the changes through a letter from the Commissioner of Income Tax (TDS), Mumbai, K M Verma. Any default of the same will attract penal interest under section 201 (A) and penalty under section 271C, the letter informs the guild.

The guild has now asked producers and distributors to deposit the TDS with interest to the government treasury in case of default since July 2006, a release says.