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The Hindu
an hour ago
- Business
- The Hindu
New draft of U.S. law cuts remittance tax to 1%, exempts bank and card transfers
U.S. legislators have significantly diluted the provision in the proposed legislation to tax remittances to other countries, including to India. The latest version of the Bill, released on Friday (June 27, 2025), reduces the tax on remittances to 1% from the earlier proposal of 3.5%, and excludes remittances made from bank accounts and other financial institutions and those made via debit or credit cards from the tax. The 1% tax will now apply only on remittances made in cash, a money order, or a cashier's check. According to international tax experts, this will come as a significant relief to the non-resident Indian (NRI) community in the U.S. The 'One Big Beautiful Bill Act' was passed by the U.S. House of Representatives in May 2025. It is now up for debate in the U.S. Senate, following which it will be voted upon. 'There is hereby imposed on any remittance transfer a tax equal to 1 percent of the amount of such transfer,' the latest version of the Act says. 'The tax imposed by this section with respect to any remittance transfer shall be paid by the sender with respect to such transfer.' However, the latest draft also inserts additional paragraphs to the section on the tax on remittances. 'The tax imposed under subsection (a) shall apply only to any remittance transfer for which the sender provides cash, a money order, a cashier's check, or any other similar physical instrument (as determined by the Secretary) to the remittance transfer provider,' the draft Bill said. In addition, the Bill now says that remittances made from 'an account held in or by a financial institution' and 'funded with a debit card or a credit card which is issued in the United States' are exempt from the tax. 'Senate Republicans released their updated draft of the proposed One Big Beautiful Bill Act on June 27 and have a self imposed deadline of July 4 to try to pass this bill,' Lloyd Pinto, Partner - U.S. Tax at Grant Thornton Bharat said. 'The updated Senate version significantly changes the remittance transfer provisions that were passed by the House Republicans. In the latest Senate draft, the remittance transfer tax has been reduced to 1% from the erstwhile proposal of 3.5%.' The 3.5% tax proposal itself was a reduction brought into the Act in May from the original proposal of 5%. 'This (the latest relaxations) should come as a huge relief to the NRI community in the US as they will not be subject to this remittance tax if the remittances are made through accounts held with designated US banks and financial institutions or funded via debit or credit cards issued in the U.S.'
Time of India
6 hours ago
- Business
- Time of India
Telangana schools body calls for fee hike based on CPI; TRSMA urges grade-wise slabs, expert panel in fee regulation bill
The Telangana Recognised School Managements Association (TRSMA), representing 10,000 unaided private schools, has proposed annual fee hikes based on the Consumer Price Index (CPI) to the state government HYDERABAD: The Telangana recognised school managements association (TRSMA), representing nearly 10,000 unaided private schools across the state, submitted a set of proposals to the govt on the draft 'Telangana private schools and junior colleges fee regulation and monitoring commission' Bill. A delegation from TRSMA, led by its office-bearers, participated in a meeting convened by the state department of education and chaired by the chief minister's adviser, K Keshava Rao. In their representation, TRSMA urged the govt to allow annual fee hikes based on the consumer price index (CPI), citing precedents from states such as Rajasthan, Gujarat, Punjab, Uttar Pradesh, and Bihar. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad They also recommended grade-wise fee slabs, pre-primary, primary (classes 1-5), upper primary (classes 6-7), and high school (classes 8-10), to ensure a fair, transparent structure aligned with academic stages. Speaking to TOI, P Raghavendra Reddy, Treasurer of TRSMA, expressed concerns over the proposed composition of the fee regulation committee. "According to the draft bill, the committee will include one representative from the school management, five teachers, and four parents," he said. He added that while parents naturally seek lower fees, the committee should also include individuals with expertise in fee regulation to ensure balanced decision-making.
Sky News AU
8 hours ago
- Politics
- Sky News AU
New push to end controversial protections for NSW's Snowy Mountain brumbies
The future of NSW's Snowy Mountain brumbies may hang in the balance if a new bill is passed to repeal controversial protections for the invasive species. Independent Wagga Wagga MP Joe McGirr gave notice on Wednesday of his intention to introduce a Bill to repeal the Kosciuszko Wild Horse Heritage Act. The Act, introduced by former deputy premier John Barilaro, recognised the 'heritage' value of brumbies and mandated their population be reduced to 3000. While it will be years until a new target is set, Invasive Species CEO Jack Gough said even one horse in Kosciuszko would cause 'enormous amounts of damage'. 'The question is the scale of damage that we're prepared to accept,' Mr Gough said alongside Mr McGirr on Wednesday. 'Having 1/3 of the national park set up as an area that is essentially a horse paddock instead of a national park is not something that Australians want.' Mr Gough admitted it would be difficult to reduce the number of feral horses in Kosciuszko National Park to zero, but stressed the risk the brumbies posed. 'We know that the Australian landscape did not evolve with large, heavy, hard-hoofed animals that are cutting up that landscape,' he said. 'They are draining the peat moss and are causing enormous amount of damage to the homes of our native species.' In May, the NSW National Parks and Wildlife Service reported as few as 1500 brumbies may be left in the park following extensive aerial culling. While images released by the Park service showed recovery to the fragile alpine ecosystem, the method of reducing horse numbers has been controversial. Animal Justice Party MP Emma Hurst said there was 'no justification' for aerial shooting at Kosciuszko, and that the party would not be supporting Mr McGirr's bill. If it was passed, she expressed concern it would result in a 'push to kill any remaining animals that are there in the park'. 'The push to actually repeal this act, to open the doors to allow for that killing is mind boggling,' she said. Ms Hurst called on NSW Environment Minister Penny Sharpe to 'keep her word' about aerial shooting. Ms Sharpe told a budget estimates committee aerial shooting had 'ceased for now' in the horse retention area after the population reports were released. Further aerial shooting has taken place outside of the retention area from June 10 until June 30, targeting 'all feral animals'. In a statement, Ms Sharpe said the state government was close to reaching the legislated targeted of 3000 wild horses in Kosciuszko, two years ahead of deadline. 'We're now focused on population management,' she said. 'We will have a look at the Bill, as we do with all Bills.' Future of the Brumby Bill remains unclear If passed, the Mr McGirr's bill would create a transition period from January 1 until July 1, 2027, at which point the previous management plan would end. The Wild Horses Community Advisory Panel will also be dissolved, with the state government freed up to create a new management plan. On Wednesday, Mr Gough and Mr McGirr expressed their confidence that the Bill would be approved with support from Labor and Liberals. Mr Gough said the so-called Brumby Bill had 'no friends left' in either the upper or lower houses, including from the Liberals, Greens, and Labor. Ms Hurst was less certain, raising the possibility it may not be supported by Nationals Party or the Shooters, Fishers, and Farmers party. Australian Brumby Alliance President Nikki Alberts is part of a vocal minority in the community who stridently oppose the shooting of brumbies in the park. She also expressed fears that if the Heritage Act was repealed 'they'll go in and shoot them (the brumbies) all'. Ms Alberts said the Alliance had put forward a proposal for management of the brumby population, with a focus on rehoming. Currently, the NSW government employs a range of brumby management measures, including trapping and rehoming and early-days immunocontraceptives. Originally published as New push to end controversial protections for NSW's Snowy Mountain brumbies
Business Recorder
13 hours ago
- Business
- Business Recorder
Tax fraud via bank account to land holder in jail
ISLAMABAD: The person, whose bank account has been used to commit tax fraud, would be considered as 'abettor' and would be subjected to prosecution including punishment/ imprisonment. Thus, the person operating business bank account to facilitate tax fraud would be considered as 'abettor'. The amended Finance Bill (2025-26) has revised the definition of 'abettor'. Key amendments made to Finance Bill: Tax fraud arrests only post-inquiry According to the amended Bill, the 'abettor' means a person who intentionally abets or connives in tax fraud as defined in clause (37) of section 2 or in the commission of any offence warranting prosecution under Sales Tax Act, and includes a person who, prepares, or causes to be prepared with or without authorization of the registered person, invoices for false claim of input tax adjustment. The 'abettor' also included a person who allows use of bank account held or operated by him for abetting tax fraud or other offence warranting prosecution under this Act or unauthorisedly or illegally maintains or operates business bank account in other registered person's name, amended Finance Bill 2025-26 added. Copyright Business Recorder, 2025
Business Times
16 hours ago
- Business
- Business Times
Wealthy Silicon Valley investors in line for US$17 billion windfall in US senate Republican tax Bill
[NEW YORK] Silicon Valley's favourite tax break may be getting an upgrade. Venture capitalists, along with successful tech founders and early startup employees, already pay no taxes on billions of US dollars of gains annually, thanks to a lucrative and complicated provision called Qualified Small Business Stock, or QSBS. Now the carve-out could get even more generous in changes included in Senate Republicans' proposed tax and spending Bill moving through Congress. The once-obscure provision is the subject of 'every dinner conversation in Silicon Valley,' said Christopher Karachale, a partner at law firm Hanson Bridgett in San Francisco. 'It's already an exceptional benefit for people who take risks on startups.' Taxpayers claimed US$51 billion of QSBS gains in 2021, a record year for venture capital deal activity, according to a Treasury paper earlier this year, with the benefits skewed to a select group. While about 33,000 people reported QSBS to the Internal Revenue Service annually over the decade studied by Treasury, 90 per cent of the total income went to individuals reporting more than US$1 million of gains on eligible stocks. Shares qualify as QSBS if they're acquired early enough in a startup's life cycle and held for more than five years. Once sold, capital gains aren't taxed up to certain limits, which advisers to the wealthy have figured out how to stretch and multiply several-fold. With the right planning, a venture capital investor or founder can end up with hundreds of millions of US dollars of tax-free income. Now the QSBS break could get even better. Though it was not addressed in previous versions of US President Donald Trump's 'One Big Beautiful Bill,' Senate Republicans slipped into their version tweaks relaxing its complex rules. Taxpayers would be able to invest at later stages in startups and still get QSBS, cash out earlier and still get a partial benefit, and skip taxes entirely on up to 50 per cent more of their windfalls. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'I'm surprised' Critics say the QSBS provision is unnecessary and overly expensive. House Democrats proposed restricting the tax break in 2021. 'I'm surprised they're not killing this thing, but I guess the lobbyists did their work,' said Manoj Viswanathan, a professor at the University of California Law San Francisco who has studied QSBS. 'I just don't think it's worth it.' The Treasury projects the current QSBS break will cost the US$44.6 billion over the decade beginning in 2025. The Senate bill's proposed changes would boost that by another US$17.2 billion over that period, the Joint Committee on Taxation estimates. Defenders of the provision have spent several years pushing Congress to expand it, arguing it encourages innovation and risk-taking. 'It brings more capital off the bench and into the game that might otherwise go to different asset classes,' said Patrick Gouhin, chief executive officer of the Angel Capital Association. 'QSBS encourages long-term investment in high-growth startups across the country by lowering the cost of capital,' Bobby Franklin, president and CEO of the National Venture Capital Association, said in a statement. 'It tells investors and founders alike: building something new in America is still worth it.' Despite the name Qualified Small Business Stock, the vast majority of small businesses are not eligible. Only C-corporations issue stock that qualifies as QSBS. Service industries are generally excluded, and the break is most valuable for technology or biotech that can grow quickly and generate large capital gains. The Senate proposal would be a potential boon to investors in artificial intelligence and other hot areas. 'Stacking' strategy To qualify under current law, taxpayers must have obtained their shares in a C-corporation at an early stage, when it had less than US$50 million of gross assets, an accounting definition often significantly less than its valuation. People who hold QSBS for at least five years can avoid taxes on up to US$10 million of capital gains or 10 times their initial investment, whichever is more. An early investor who puts US$30 million into a startup, therefore, can theoretically receive US$300 million tax-free. Founders can maximise their initial basis, and thus their potential QSBS-eligible gains, by transferring intellectual property into a startup from a predecessor company. Through a process called 'stacking,' QSBS holders can multiply the benefits of the US$10 million exclusion as well. 'It's the biggest game in town,' Brian Gray, a partner at accounting firm Gursey Schneider in Los Angeles, said of the strategy. His clients typically set up six or seven trusts, each benefiting a different family member, to get up to US$60 million or US$70 million in tax-free gains rather than just US$10 million. Senate Republican lawmakers would turbo-charge those benefits. They would set a US$75 million limit on an eligible startup's gross assets, up from US$50 million, on QSBS issued after the bill is enacted. Maximum tax-free gains would jump to US$15 million, from US$10 million. Both limits would be adjusted for inflation starting in 2027. The bill would also make it easier for QSBS holders to exit their investments sooner than five years without forfeiting tax benefits, allowing them to exclude half their gain after three years and 75 per cent after four years. That will be valuable to serial entrepreneurs, according to Gouhin of the Angel Capital Association. 'This gives you an added incentive to turn that company as quickly as possible.' BLOOMBERG
