Business Standard

The mystery of 20% TCS

There is a general principle that fiscal policies should be transparent and have obvious motives

The mystery of 20% TCS

Devangshu Datta

Listen to This Article

The imposition of 20 per cent TCS (tax collected at source) on credit card usage abroad, along with a ban on Indians keeping money for more than six months in overseas bank accounts, suggests somebody has examined patterns of overseas expenditures and savings in great detail.

The measures are, however, puzzling at first glance, and near-incomprehensible at second glance. Is this in order to curb overseas travel? Is it in order to bring tax evaders within the net? Is it to discourage (or perhaps to encourage) investing abroad? Will it generate a large interest-free float for the exchequer? The answers all
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 19 2023 | 10:24 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to