The finance ministry is “evaluating” the issues related to the implementation of a new rule that mandates 20 per cent tax collected at source (TCS) on foreign remittances.
“The decision on extending the July 1 deadline (for the implementation of the new rule) has not yet been taken. However, it cannot be completely ruled out amid procedural challenges,” a government source privy to the matter told Business Standard. He confirmed that a few banks have raised concerns with the finance ministry regarding the preparedness of the reporting systems required to implement the new rule.
“Some banks are ready with the required system but a few of them have sought more time. A few credit card companies, too, flagged that they