TCS and TDS Everywhere

TCS stands for Tax Collected at Source and TDS stands for Tax Deducted at Source, even though the meaning of both terms are pretty similar lately the TCS term is seen more due to the Government's implementation of a 20% TCS for all foreign-based transactions done via your Credit Card. This means if you are planning a trip in a foreign country then chances are that you will have to pay 120% of what you would have paid before the new Tax Policy.

The Indian Government has recently levied a 20 percent TCS/TDS for any money that is spent out of India, which means that even if you transfer money to the US you will have to pay a hefty 20 percent tax for that purpose. This was mainly done so that people are encouraged to spend their money in India rather than out of India and I kind of agree with that. As if people started spending their Money in India then chances are that the Indican Economy will see a massive boost in their GDP and other factors like the Stock Market as well.

A part of me really likes this initiative but I just can't help but see the other side of the COIN here which is screaming to me that the government just wants some cash upfront without having to pay any interest and that is the reason they are doing this. Yes, we will get the TDS/TCS back when we file our Income Tax Returns but that will be at least 18 months later which means the government just got some HUGE LOAN with no Interest Charged for possibly 18 months.

What Do you Feel is the Government's Actual Agenda with this TDS/TCS?