Gulte Movie News And Politics
In a major relief to the NRIs in America, the remittance tax over goods sent by their relatives from India has been limited to 1%, against the 5% as decided in the One Big Beautiful Bill.
The tax has been reduced to 1% in the draft bill. At the same time, payments made through US-issued debit and credit cards have been exempted from tax. Tax will be applicable only when the sender provides cash, a money order or cashier cheque.
The draft Bill released by the US Senate also provides exemptions for transfers from bank accounts and other financial institutions. The Senate proposal states that the remittance tax will only be implemented on qualifying transfers conducted after December 31, 2025.
In May this year, 5% remittance tax has been proposed on the money sent by Indians in America to their relatives in India. The Bill also mentioned that the tax is applicable for all citizens including H1B visa holders and Green Card holders, while exempting the American citizens.
The proposal of remittance tax imposition led to anxiety among the crores of Indians living in the US. It is estimated that Indians will bear a tax burden of Rs USD 1.6 billion per year due to remittance tax.
The Big Beautiful Bill had passed through the House of Republicans and the Senate too. By the time, the Bill reached the House of Republicans, the tax was reduced to 3.5% and on reaching the Senate, it was further lowered to 1%.
On May 22, the Bill was railroaded through the House of Representatives by a simple majority of 214-215. In the Senate, it was passed with a thin majority of 51-49. Two Republicans also voted against the Bill, even when it is their party in the ruling.
Several Republicans are opposing the medical aid policy, reduction in the number of food coupons, USD 3.8 trillion tax concession.
Tags Remittance Tax
