Donald Trump's ‘Big, Beautiful Bill' heads for final vote — major relief for NRIs as India remittance tax cut to 1%
Although introduced by the Republican president, the bill has attracted criticism from several lawmakers within his own party. Concerns raised include the projected $3 trillion increase in national debt and significant cuts to social welfare programs.
Major relief for Indian remitters in final draft
One of the most notable revisions in the final draft of the bill, released on June 27, involves a substantial reduction in the proposed tax on international remittances. Originally set at 5 percent, the tax was first reduced to 3.5 percent and now stands at just 1 percent. This change comes as a relief to many Indian professionals and non-resident Indians (NRIs) in the US who regularly send money back home.
The provision will benefit nearly 4.5 million Indians living in the US, including 3.2 million persons of Indian origin. It applies to US residents who are not citizens—such as Green Card holders, temporary visa holders like H-1B and H-2A workers, and international students.
According to the latest version of the bill, 'There is hereby imposed on any remittance transfer a tax equal to 1 per cent of the amount of such transfer… paid by the sender.'
Specific transfers exempt from tax
The bill also outlines specific exemptions. Transfers made from accounts held by financial institutions and those funded via US-issued debit or credit cards will not be taxed under this provision. Cash transfers, money orders, and cashier's checks will fall under the 1 percent tax rate.
This final version of the bill reflects efforts to balance domestic economic concerns with the financial realities of millions of immigrants working in the United States, particularly those from India.
As the House prepares for a conclusive vote, all eyes remain on how this high-stakes legislation will shape Trump's economic legacy.
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