The debate on President Donald Trump’s ‘Big Beautiful Bill’ continues in the US Senate. The bill has not yet been passed and become a law. However, before this, a proposal of the bill has given a big relief to the Indians living in America. This relief has been given in the Remittance Tax i.e. Money Transfer Tax, which is like a good news for the Indians living in America.
Remittance tax has been reduced for NRIs, i.e., Non-Resident Indians living in America. Earlier this tax was 3.5%, but after getting approval by 51 votes against 49, this tax has been reduced to 1%. This will make it easier for Indians living in America to transfer money to India, as the tax on it has now been reduced significantly. If you are an Indian and want to transfer money to India while living in the US and for this you send the money through cash, money order, cashier’s check or other physical means then you will have to pay 1% remittance tax for this.
If you want to avoid this too, then you will have to send money through a debit or credit card issued in the US or an account with a financial institution. The new change does not include transfers made from accounts held in banks and other financial institutions. At the same time, transfers made through debit and credit cards issued in America are also not included in this provision.