Thanks I didn't realize that it was refundable, I guess "India makes people loan 20% of their foreign remittances to the government interest-free" would be more accurate.
> "India makes people loan 20% of their foreign remittances to the government interest-free" would be more accurate.
It wouldn't. The TCS can be offset against other tax liabilities. The government pays out 6% interest on excess tax payments. For reference, 364 day T-bills are currently yielding ~5.5%.
The idea is to force reporting and add friction. Not raise revenue.
