Tax on sending money from America from America: This is a major setback for foreign nationals working in America. The US House of Representatives passed the ‘One Big, Beautiful Bill Act’ on 22 May. According to this bill, money will be levied by foreign nationals working in the US on their country.
Initially this tax rate was 5%, but due to further controversy it was reduced to 3.5%. This will have the most impact on Indian migrants and Indian economy, as the biggest source of money dispatch in India comes from America. This law will be effective from 1 January 2026 after the Senate is passed by the Senate.
What is ‘One Big, Beautiful Bill Act’?
This is a new tax bill that applies to foreign nationals working in the US. Under this, if foreign nationals working in the US send money to their country, they will have to pay 3.5% tax on that amount. Initially it was proposed to keep this tax rate 5%, but after the dispute it was reduced to 3.5%.
That is, if now 100 rupees 1,00,000 is sent, then according to 3.5% tax, Rs. 3500 tax will have to be paid.
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Its biggest impact will be seen on India’s economy.
India receives the highest amount of money from America. In 2023-24, India received a total of $ 130 billion funds, out of which 23.4% ($ 30 billion) came from the US. The 3.5% tax will cost Indian migrants an additional burden of $ 1.05 billion (Rs 8750 crore) every year, which will directly affect India’s economy, real estate and investment. The main objective of this tax is to raise additional revenue for the US government.
