‘The One Big Beautiful Bill’ Could Levy 5% Tax on Money Sent Abroad by Non-Citizens
The US House Ways and Means Committee has proposed a bill, officially titled The One Big Beautiful Bill, that includes a controversial 5% tax on remittances sent outside the US by non-citizens. This means that millions of Indians living in the US, including H-1B visa holders, L-1 visa holders, and green card holders, would face an additional financial burden when sending money back home, reported timesofindia.indiatimes.com.
With $32 Billion Remitted From the US to India Annually, the New Tax Could Cost the Diaspora $1.6 Billion.
The Indian diaspora in the US is among the largest and highest-earning overseas communities, with nearly 4.5 million Indians residing there. According to RBI data, the US contributed nearly 28% of India’s total remittances of $118.7 billion in 2023-24. If the bill becomes law, this 5% levy could translate into a $1.6 billion hit. The tax applies regardless of transfer size and will affect remittances for family support, investments in real estate, or securities. While ‘verified US senders’ (US citizens or nationals) are exempt, most non-citizen residents will not be.
The House aims to pass the bill by May, with Senate approval expected by mid-year. Experts advise the diaspora to send larger remittances soon to minimize the tax impact before the law takes effect.
