Since the United States Congress passed the glut spending bill of President Donald Trump, there has been interest in how the bill is going to affect the whole world. In the case of India, the consequences that come most easily and into the open eye are, first of all, the impact on the remittances that Non-Resident Indians (NRIs) usually send or make several investments into the country, and the policies concerning migration.
Trump had called the 900-page bill the OBB bill, i.e. the One Big Beautiful Bill, which has been day by day being looked upon critically by the people. The initial proposals that were advocated in the form of a draft were that all remittances getting out of the US to other countries would be at a steep 5 per cent taxation. But in its last version, this tax has been scaled to only 1% and this gives some respite to the millions of NRIs.
Such provision will start operation on January 1, 2026. Indians living in the United States of America form a population of 4.5 million, and remittance forms a very important lifeline financially to many households in India. Though under the existing regulations, bank and card-based remittance is still not subjected to the specified scenario of removal of the exemption, the NRIs who engage in high-value or frequent remittance are likely to have to re-establish their future finances plans, stated Ram Naik, co-founder and director at The Guardians Real Estate Advisory, to a news agency.
The satisfied bill never changes the current tax rules on the foreign-source rental income earned by the US residents even including the green card holders of Indian origin, and the US citizens.
This wealth will remain treated as taxable under the existing law in the US, as explained by Sandeep Bhalla, Partner, Dhruva Advisors. This means that the Indian taxes that will be levied on this rental income will still be refunded as tax credits in the US, thus, tax is not levied twice.
Not just money, migration is on board too, and according to experts, there will be some alterations in the processes of the H-1B and other work visas in the upcoming months, with Trump in full swing in his new policy agenda.
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