The One, Big, Beautiful Bill – proposes a 3.5% excise tax on remittance by non-citizens, reflecting President Donald Trump’s economic vision.But, whom does it really impact? We have got your key questions covered:Q. Will this tax proposal impact the Visa holders (e.g., H-1B, F-1), Green card holders? Will they have to pay this tax while sending/ remitting money back to India?
And: YesQ. Do the Non-residents with U.S. income or assets and Foreign nationals receiving restricted stock units (RSUs) or other U.S.-sourced income who remit money abroad will have to pay this?And. YesQ. Does it means more tax compliance for those who are working in US?And. YesQ. Will greater compliance lead to more enforcement concerns for financial institutions and money transfer services?Ans. YesQ. Will it be levied on those non-resident Indians (NRIs) who have returned to India but still earn U.S. income from investments, real estate, or restricted stock units (RSUs) from American companies?Ans. Yes, if these transfers, if repatriated, could fall under the scope of this proposed 3.5% excise tax.Q. Is there a threshold below which this Excise tax will not apply?Ans. NoQ. If a non-resident has a house property in US which he is selling and wants to remit money to India, will it apply on this remittance also?Ans. YesQ. If someone has gone on a two-year assignment to US with a US company and is remitting salary back to India, will Excise tax apply?Ans. YesQ. Will I get credit of this Excise tax against my income tax in India or US, assuming I am an Indian citizen?Ans. No. However, the Bill provides for a refundable tax credit for any excise taxes required to be paid by taxpayers with valid Social Security numbers. So, then the NRI is eligible to claim credit.Interestingly, in 2023, Indians in the US sent home over $23 billion in remittances, according to World Bank data, making the United States one of India’s top sources of foreign income. Also, IT sector is likely to be impacted the most from the proposed tax, as thousands of employees from India are on work assignment in US and send money back to India.Also Read: What the US ‘One Big, Beautiful Bill Act’ means for NRIs and visa holders(Edited by : Poonam Behura)First Published: May 23, 2025 6:00 PM IST
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