By Admin 
US President Donald Trump has taken a step that is upset Indian people living in the US. Apart from this, it is also going to affect their families living in India. In fact, there is a proposal in President Donald Trump’s ‘One Big Beautiful Bill’, according to which, if India will be sent money from America from 2026, it will be charged 3.5 percent tax.
This proposal has recently received approval from the lower house of the US Parliament. Now this bill will go to the Senate, where voting can be done in June or July. If passed, it will become a law and it can become a cause of great concern for overseas Indians.
Why has Indians worry about increasing?
There is a provision in this bill that if they are not American citizens, if they send money outside America, then they will be charged 3.5 percent tax. Earlier this rate was proposed 5 percent, which has now been reduced to 3.5 percent. This will affect the people of India, who is one of the largest migrant population in America. According to 2023 data, more than 29 lakh people of Indian origin are living in the US.
Who will have to pay this tax?
The thing to note is that this tax will be applicable only to non-citizens. That is, if you are a green card holder, on H1B visa or working on a student visa, then you have to come under this tax. American citizens have been exempted from this. However, a “credit mechanism” has been kept for him, so that they will be able to claim tax refund.
Direct effect on those sending money every month
For those who send money to their family every month in India, this tax will have a direct impact. According to RBI data, the US stake in 2023-24 in the upcoming total inward remedies to India was 27.7 per cent (about 32 billion $ 32 billion), which was 22.9 per cent in 2016-17.
Impact on NRE account and property investment too?
Experts believe that this proposed tax will not be limited to sending money only. It can also affect the funds coming in NRE accounts in India and the real estate investment being done in India in India.
Companies may also be affected by this, because employees who are sent to America may now have to include this tax in the Relocation package, which will increase their costs.
Will US investment also affect?
The big question is also whether this tax will also be levied on US investment made by Indian people? For example, if someone has invested money in stocks or financial instruments in America and now he wants to send money to India, will it be taxed?
Talking to the Economic Times, Tax Expert, Kuldeep Kumar says that yes, if you deposit the money of investment in the US bank and send it to India again, then 3.5 percent tax can also be implemented on it. Even if an employee has received eSops from the US company and they want to sell the money and send it to India, then there may be tax. And since this tax falls under the category of “Excise Tax”, it cannot even get a credit under Indo-US Tax Treaty, that is, a direct impact on your pocket.