There is relief news for millions of Indians working in America. Not only this, if an Indian NRI bank sends money through an account, debit or credit card, then it will be taxed 0. Remittance tax has been reduced by amending the One Big Beautiful Bill Act. The already proposed 3.5% tax has been reduced to just 1% for transferring money to the revised draft of One Big Beautiful Bill. This move of the Trump government has brought relief to millions of Indians living in America. The bill has been passed by the US House of Representatives. The Senate Republican released an updated draft of the bill on 27 June. After the debate, it will be sent to the President for signature after the bill is passed from the Senate. This process is expected to be completed by 4 July.
If you send money in this way, then 1% tax will be levied
According to the revised bill released on 27 June 2025, the Remittance Tax has been reduced from the pre -proposed 3.5% to just 1%. In this, the money sent through bank accounts, debit or credit cards has been given a complete discount from this tax. But if you send money through cash, money order, cashier check or other similar physical means, then you will have to pay 1 percent tax for this. But if you want to avoid this too, then you will have to send money through the debit or credit card or any financial institution account in the US. The amendment to the One Big Beautiful Bill is especially beneficial for non -resident Indians (NRIs). Millions of Indians live and work in the US and send money to their families every month. In such a situation, this revised bill has brought a sigh of relief for them.
Relief to Indian community
International tax experts say that the move has brought great relief to the Indian community living in the US. Grant Thornton India’s US Tax Partner Lloyd Pinto said, “Remittance tax has been reduced from 3.5% to 1% in the latest draft of the Senate. Also, the debit/credit cards made through the accounts or US banks and the US have been given tax. It is a big relief for the Indian community.
Remittance tax reduced to 5% in May
Earlier in May 2025, the proposed 5% Remittance Tax in this bill was reduced to 3.5%. But now once again it has been revised to 1%. And along with this, tax exemption has also been given for transferring money through bank accounts and cards. This bill will be applicable from 31 December 2025. That is, the tax imposed under this bill will be applicable from 1 January 2026.
