Impact of Trump’s Tax Bill on International Money Transfers from the US to India

The recent tax reforms proposed under President Trump’s ‘One Big Beautiful Bill’ are set to bring substantial benefits to the Indian community in the US. The legislation includes provisions that ease the tax burden on international money transfers, a move that directly benefits India, a country with a large number of migrants sending remittances home. The core advantage for Indians is the revised tax rate on international money transfers, dropping from the original 5% to a mere 1%. This change offers significant financial relief to Indian professionals working in America and the wider NRI population. This rule applies to non-US citizens residing in the US, including green card holders, those on temporary visas like H-1B, and international students. The bill clarifies that all international money transfers will be subject to a 1% tax, to be paid by the sender. Moreover, the bill also includes tax exemptions for remittances originating from financial institutions and those processed through US-issued debit or credit cards. An estimated 4.5 million Indians, including 3.2 million of Indian origin, are expected to see financial gains from this.