Remittance: Donald Trump’s ‘The One Big Beautiful Bill’ can be ugly for Indians in America

US President Donald Trump’s ‘The One Big Beautiful Bill’ can actually be ugly for Indians living in the US. By 2026, Indians sending money from American home may have to pay 3.5% remittance tax. ‘The One Big Beautiful Bill’ is an important implication for many Indian inhabitants in the United States, including H -1B visa holders and permanent inhabitants. If President Donald Trump’s proposed law is approved, international funds from the United States can be more expensive by 2026. A comprehensive 1,116-hit ‘One Big Beautiful Bill’, including tax amendments and decrease in expenditure, has been approved by the House and waiting for Senate’s idea. The final vote is anticipated in the end of June or in July, in which the implementation is accidental when passed. The House passed the bill on 22 May, which reduced the proposed remittance tax rate at the beginning of 5%.The law determines that only non-American citizens, including permanent residents and employment visa holders, will be subject to this tax. American citizens who levy 3.5% tax can claim credit during their tax filing, provided they use verified remittance providers.For Indian citizens, it holds special significance as they are one of the largest immigrant population in the United States. India gets the largest part of dispatch from AmericaAccording to data from the Migration Policy Institute, more than 2.9 million Indian migrants resided in the United States in 2023. The US is the second most favorite global destination of Indians after the United Arab Emirates. The data also indicates that Indians represented the second largest foreign-lineage in the United States after Mexicocyers, including 6% of a total of 47.8 million foreign natives in 2023.The US remains the biggest source of global remittances. The RBI’s remittance survey released in March indicates that a total of $ 118.7 billion dispatch in 2023-24, the United States contributed around 32 billion dollars, which is around 28 percent.How will Indians be killed in AmericaShould this law be implemented, and even if someone was to maintain the current remittance level, the Indian community would face an additional tax burden of $ 1.12 billion!Even students earning income through various work opportunities will need to pay 3.5% tax if they want to complete their studies and transfer their earnings to India.Also read Big Export Boom: India benefits from Donald Trump’s tariff; Indian firms see a competitive status in the American tariff landscapeSince no minimum amount is specified, taxation applies to removal of each value. The rule will affect all the categories of Indians living in the US, including H -1B visas, L -1 visa (for intra -company transfer), and permanent inhabitants. Relatives in India were sent or invested in Indian assets, such as securities or real estate, will be subject to 5 percent cut by remittance service provider (like US Bank).This regulation is likely to affect individuals who regularly transfer money.Amarpal Chadha, a tax partner and mobility leader of EY India, says, “Excise Levi on removal by American citizens/citizens can be prevented by remittance through a qualified removal transfer provider, which is recorded in a written agreement with a written agreement with American countries or claimed as their income tax subject for certain conditions.,“Bill, which is to curb the outflow of the US dollar, is currently under the Senate review and if enacted, can affect many Indian professionals working in the US, especially on H -1B visas or green cards, transmit in India. Indian diaspora in America may need to wait and watch, which requires the quantity of the quantity and re -development of the rimities and re -development. Is.”Also read ‘Will not discuss …’: The US tells the WTO that India has no basis for implementing anti -retaliation on 29 American products.Devesh Kapoor, who teaches political science and specializes in migrant studies at Johns Hopkins University, Baltimore, noted that Indian migrants generally send about 20 percent of their income back home, which leads to ups and downs according to their domestic needs.Sudarshan Motwani, which leads the bookmyforex, indicates significant results for foreign workers. “These people have gone there for better possibilities so that they can return their families home. They need to be sent back home in India. Therefore, they will all be subject to new 3.5% tax, “Motwani told ET.According to Kuldeep Kumar, partner of MainSte Tax Advisors, this regulation can affect the influx of money in India’s premium real estate sector and money in investments that have seen an increase in capital from foreign Indians. Kumar noted that it could also affect corporate mobility programs where employees are posted in the US and receive US-based compensation.“These employees can try to interact on an additional 3.5% cost as part of their rehabilitation package or as per tax equal arrangement, effectively increase salary costs for companies. Since this levy is classified as excise duty, it may not fall within the definition of ‘income tax’ mentioned in the tax treaty, and hence he may not be eligible for a foreign tax credits.Also read ‘Instead of discussing this matter …’: Crying on India’s mango exports; Officials say American inspectors did not follow the protocol