Big relief for Indians working in America, what is the decision of the US government:

News Topical, Digital Desk : There is a big relief news for Indian professionals working in America and the expatriate Indian community. In the revised draft of America's new proposed bill One Big Beautiful Bill Act (OBBBA), the remittance tax has been reduced from 5 percent to 1 percent. This means that those sending money from America to India have got a big relief in the tax burden.

What was the earlier proposal?

The original bill passed by the US House of Representatives in May 2025 proposed to impose a 5 percent tax on remittances sent from the US to foreign countries. This tax was to be applicable on transfers made through cash, money orders and cashier's checks. This had raised concerns of Indians working in the US on temporary visas such as H-1B, H-2A, who regularly send money to their families in India, repay loans or invest. A 5 percent cut would have significantly increased the cost of transferring money and would have also increased the additional burden on Indians working in the US.

What has changed now? Many important changes have been made in the revised version of OBBBA, according to which the remittance tax will now be only 1 percent, which is much less than the previously proposed 5 percent. This tax will be applicable only on remittances sent by cash, money orders or cashier's checks. Transfers made from bank accounts, debit cards and credit cards will be exempted from this tax. According to the amended bill, a tax of 1 percent will be levied on every remittance transfer, which will be paid by the one who is sending the money.

What will be the benefit to Indian professionals? By reducing the tax rates, the cost of sending money will be less for Indians. Apart from this, there will be no effect on digital transfer. Due to the use of digital route by most people, most people will remain within the scope of tax relief. At the same time, this amendment is being seen as a response to the concerns of the Indian-American community. This indicates that the voices of the expatriate community in America are now playing an important role in policy making.