Donald Trump’s ‘One Big Beautiful Bill’ offers significant financial advantages to the Indian diaspora residing in the United States, particularly through tax cuts impacting international money transfers. The most notable change is the reduction in the tax rate on international money transfers, which has been brought down from 5% to 1%. This adjustment is designed to benefit numerous countries, with India being a primary beneficiary due to the substantial volume of remittances sent home by its migrant population. This reduction in taxes provides relief for Indian professionals working in the US, as well as the wider NRI community. This tax is applicable to non-US citizens in the US, including green card holders, those with temporary visas (H-1B, H-2A, etc.), and international students. The updated draft of the bill specifies that a 1% tax will be levied on all international money transfers, with the sender responsible for payment. The bill also includes provisions for tax exemptions on remittances originating from financial institutions and those utilizing US-issued debit or credit cards. The amendment is anticipated to benefit around 4.5 million Indians residing in the US, including approximately 3.2 million individuals of Indian origin.
