The ‘One Big Beautiful Bill,’ initiated by US President Donald Trump, is set to offer substantial advantages to the Indian community in the United States. The most significant benefit for Indians is the proposed reduction in taxes, which will take effect once the bill is enacted. The bill modifies the taxation rules for international money transfers. This will provide relief to Indian professionals working in America and the NRI community. The earlier proposal suggested a 5% tax on remittances to countries such as India, but the revised draft, released on June 27th, lowered this to just 1%. This reduction is a welcome change for the Indian community. This tax provision applies to various forms of remittances, including cash, money orders, and cashier’s checks. The new bill stipulates a 1% tax on all international money transfers, payable by the sender. It also offers tax exemptions for remittances from accounts held by financial institutions and those funded by US-issued debit or credit cards. About 4.5 million Indians in the US, including approximately 3.2 million people of Indian origin, are expected to benefit.
