The rise in TDS/TCS means that taxpayers are giving a vast interest-free loan to the government. TDS/TCS is collected in advance but refunds come after returns are filed. Gautam Nayak, CA, says “Given the large size of the refunds, almost ₹3 trillion, that is a substantial interest-free float for the government. Further, the interest received from the beginning of next year is only 6% per annum, and that, too, is taxable”.