Donald Trump’s ‘One Big Beautiful Bill’ includes provisions that could significantly benefit the Indian population residing in the United States. The proposed tax cuts represent a major advantage for Indians. The bill eases the tax regulations concerning international money transfers. This change is especially advantageous for India, where a considerable number of immigrants regularly send money to their home country. The tax rate on international money transfers, initially set at 5%, has been reduced to 1%. This revised rate benefits Indian professionals and the NRI community. The tax reduction will be applicable to a wide range of remittances, including cash, money orders, and cashier’s checks. The new legislation states that a 1% tax will be applied to all international money transfers, which will be the responsibility of the sender. Furthermore, the bill introduces tax exemptions for remittances from accounts held at financial institutions and those funded using US-issued debit or credit cards. The change is expected to positively impact the Indian diaspora, with around 4.5 million Indians in the US and 3.2 million Indian-origin people expected to gain from the changes.
Tax Cuts and Remittances: How Trump’s Bill Impacts Indians in the US
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