Trump’s ‘big, beautiful bill’ faces House vote: How it affects Indians in US and here at home

Among the bill’s astir intimately watched provisions is simply a arguable taxation connected overseas remittances, a determination that straight impacts millions of Indians surviving successful the US

US President Donald Trump. Reuters

President Donald Trump’s sweeping tax-and-spending package, nicknamed the “One Big, Beautiful Bill,” is headed for a last ballot successful the US House of Representatives.

A large pillar of Trump’s second-term agenda, the measure has drawn disapproval from some parties, peculiarly implicit concerns astir rising indebtedness and crisp cuts to welfare.

Among the bill’s astir intimately watched provisions is simply a arguable taxation connected overseas remittances, a determination that straight impacts millions of Indians surviving successful the United States.

Final remittance taxation acceptable astatine 1%

Originally, the measure projected a 5 per cent taxation connected wealth sent abroad, including to India, but aft revisions, the last mentation passed by the Senate connected June 27 reduced this to conscionable 1 per cent. This alteration offers alleviation to the estimated 4.5 cardinal Indians successful the US, particularly the 3.2 cardinal of Indian origin, who regularly nonstop wealth backmost home.

The caller taxation volition use to

Non-citizen US residents, including Green Card holders

H-1B and H-2A visa holders

International students

How the taxation works

According to the bill, a 1 per cent taxation volition use to immoderate remittance sent utilizing cash, wealth orders, oregon cashier’s checks. Transfers made done banks oregon paid utilizing US-issued debit/credit cards volition beryllium exempt. Those utilizing qualified remittance services (as defined by the Treasury) volition besides debar the tax. The taxation volition instrumentality effect starting January 1, 2026.

Why it’s important for India

India is the world’s apical recipient of remittances, receiving $129 cardinal successful 2023–24, astir 28 per cent of which came from the United States. These funds play a captious relation successful supporting families and section economies, particularly successful states similar Kerala, Uttar Pradesh, and Bihar. A 1 per cent remittance taxation connected the US transfers could outgo Indian households an estimated $360 cardinal annually, a substantial, though overmuch smaller, magnitude than the astir $1.8 cardinal that would person resulted from the archetypal 5 per cent proposal. If passed by the House, the measure would people a large legislative triumph for Trump, blending heavy taxation cuts with important reductions successful authorities spending. However, statement continues astir the interaction connected working-class immigrants and the semipermanent effects connected overseas economies reliant connected US remittances.