Us remittans tax on nris: While US President Donald Trump has made the whole world sleep with his tariff policy, India is going to get a shock due to another new order of America. In fact, in the bill introduced on 12 May 2025, the Republican House of the US has proposed to impose 5 % tax on the money sent by non -citizens abroad. That is, NRIs living in America (NRI) will now have to pay tax on sending money to their family in India. India is going to get a big shock due to this decision, because the government earns a lot of money from the money coming from abroad.
The bill has been designed to make the Tax Cuts and Jobs Act of 2017 permanent, increase standard deduction and increase child tax credit by $ 2,500 by 2028. President Donald Trump has described the bill as excellent and appealed to Republican to pass it soon. 5% Remittance Tax aims to raise funds through it and strengthen border security.
What will be the loss to India?
This new decision of America will increase NRI problems. Now they will have to pay tax on sending money to their families in India, which will cost more of their money. Since India is the highest remedies in the world, where around $ 83 billion comes from abroad every year, most of which come from America. But IRS will have to pay Rs 5,000 (for dollars) on every 1 lakh rupees (for dollars) sent under the new rule. This will affect family maintenance, property purchase, education expenses and other needs. Let us tell you that till now there was no tax on Remittens in America, but the new policy will bring a big change. This will not only increase the problem of NRI, but will also cause economic loss to India.
How long will this rule be implemented?
The Republican House aims to pass the Remittance Tax Policy by May 26, 2025, after which it will be sent to the Senate. The MPs plan to make it a law by July 4. If it gets approval, banks and money transfer services will impose 5% tax on every transaction. This will affect the existing financial strategies of NRI. Because now the price of every dollar sent to India will be reduced. This tax will be applicable to all valid channels, such as banks and NRE/NRO accounts.
