The US House of Representatives has passed the sweeping “One Big Beautiful Bill,” which includes the imposition of tax on overseas remittances. Initially proposed as 5 per cent, the remittance tax was revised downward to 3.5 per cent before final approval. This new tax is set to be applicable starting January 1, 2026.
While the reduction seems like a sigh of relief, experts suggest that even this lower rate could have serious implications for Indian working professionals in the US sending money back home.
“The reduction offers some relief to the Indian diaspora,” says Shefali Mundra, a chartered accountant. “But with India receiving approximately $32 billion in remittances from the US, this seemingly moderate tax could eventually result in substantial annual outflow. The policy could significantly impact household income and economic activities heavily dependent on these funds.”
In 2023, overseas Indians sent about $120 billion in remittances, with a substantial portion originating from the US. A recent survey from the Reserve Bank of India (RBI) indicated that the US accounted for the largest share of remittances to India in 2023–24, contributing 27.7 per cent.
With a diaspora of over 2.7 million in the US, remittances have been a lifeline for many Indian families back home. While most of the remittances are used for family maintenance, including healthcare, education and living expenses, a significant portion also goes toward investment in real estate, savings and small businesses.
The bill maintained the exemption for “verified US citizens or US nationals” in its final draft.
(report filed by bl intern Rohan Das)
Published on May 23, 2025
The US House of Representatives has passed the sweeping “One Big Beautiful Bill,” which includes the imposition of tax on overseas remittances. Initially proposed as 5 per cent, the remittance tax was revised downward to 3.5 per cent before final approval. This new tax is set to be applicable starting January 1, 2026.
While the reduction seems like a sigh of relief, experts suggest that even this lower rate could have serious implications for Indian working professionals in the US sending money back home.
“The reduction offers some relief to the Indian diaspora,” says Shefali Mundra, a chartered accountant. “But with India receiving approximately $32 billion in remittances from the US, this seemingly moderate tax could eventually result in substantial annual outflow. The policy could significantly impact household income and economic activities heavily dependent on these funds.”
In 2023, overseas Indians sent about $120 billion in remittances, with a substantial portion originating from the US. A recent survey from the Reserve Bank of India (RBI) indicated that the US accounted for the largest share of remittances to India in 2023–24, contributing 27.7 per cent.
With a diaspora of over 2.7 million in the US, remittances have been a lifeline for many Indian families back home. While most of the remittances are used for family maintenance, including healthcare, education and living expenses, a significant portion also goes toward investment in real estate, savings and small businesses.
The bill maintained the exemption for “verified US citizens or US nationals” in its final draft.
(report filed by bl intern Rohan Das)
Published on May 23, 2025
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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