President Donald Trump’s proposed tax reforms, dubbed the ‘One Big Beautiful Bill,’ are poised to positively impact the Indian diaspora residing in the United States. A key advantage for Indian citizens is the anticipated reduction in taxes. The new bill relaxes provisions related to taxes on international money transfers, potentially benefiting India significantly, as a substantial number of migrants send remittances back home. The tax on international money transfers has been reduced from 5% to 1% in the revised draft. This tax reduction will benefit Indian professionals and the NRI community. The amendment is expected to benefit approximately 4.5 million Indians in the US, including around 3.2 million individuals of Indian origin. The new draft clearly states that a 1% tax will be applied to all international money transfers, payable by the sender. The bill also proposes tax exemptions for remittances made from accounts held in financial institutions and those funded by US-issued debit or credit cards.
