Big relief for Indians living in America, tax relief on sending money to India

There is big news for Non-Resident Indians (NRIs) living in America. The US Senate has reduced the remittance (money transfer) tax by amending the One Big Beautiful Bill Act. In the proposal, the remittance tax has been reduced from 3.5 percent to 1 percent. This decision will provide great relief to Indians living in America. They will now be able to easily transfer more money to India. Under the new changes in the One Big Beautiful Bill Act, the benefit of tax reduction will not be available on transferring deposits in banks and other financial institutions. Also, remittances sent through debit and credit cards are not covered. Indians will get big relief According to the Migration Policy Institute, Indians are the second largest foreign-born population in America. Their number was more than 29 lakh in 2023. 27.7 percent of the total remittances to India in the financial year 2023-24 came from America. Which was $ 32 billion. With the relief in remittance tax, Indians will be able to send more money to India. Earlier, it was decided to impose 5 percent tax in this bill. Later, it was reduced to 3.5 percent. Now, the provision of reducing the tax to 1 percent in the new amendment will reduce the expenses incurred behind remittance.

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