US Introduces New Tax Bill: The potential passage of a new bill in the US Congress could significantly impact millions of Indians working in the United States who send money back home to their families.
New US Bill Introduced: Concerning news for millions of Indians residing in the US: a proposed 5% additional tax on money sent abroad. This regulation would apply to H1B visa holders, green card holders, and other foreign nationals. If passed by the US Congress, this bill would substantially impact Indians regularly remitting funds to their home country.
This proposal, titled “The One Big Beautiful Bill,” was recently released by the US House Ways and Means Committee. Page 327 of the 389-page document includes a provision for a 5% tax on all money transfers, with no mention of a minimum transfer amount.
New Tax on Remittances from the US
Non-citizens residing in the US will now face an additional tax on money sent to family or relatives abroad, regardless of the amount. This tax would be levied in the country from which the transfer originates. A large Indian population in the US sends the highest volume of remittances to India.
According to 2024 Reserve Bank of India data, Indians residing in the US remitted approximately $32 billion to India in the previous fiscal year. The Ministry of External Affairs estimates there are approximately 4.5 million Indians in the US, of which 3.2 million are Indian-origin citizens. This new tax will significantly impact the finances of millions of Indians.
Approximately 4.5 Million Indians Reside in the US
Recent estimates from the Ministry of External Affairs indicate that approximately 4.5 million Indians currently reside in the United States. Of these, approximately 3.2 million are of Indian origin, actively participating in the diverse social and economic activities of the country. This number reflects the growing presence and increasing role of Indian immigrants in the US.
