Indian professionals and Non-Resident Indians (NRIs) in the United States have a reason to breathe easy. US President Donald Trump’s signature legislative package, the “One Big Beautiful Bill Act,” has cleared a crucial hurdle in the Senate and includes major revisions that may benefit the Indian diaspora, particularly around the hotly debated remittance tax.

One of the most controversial elements of the bill was the proposed 5 per cent excise tax on international remittance transfers, a policy intended to raise revenue by taxing money sent overseas by non-citizens. The initial draft drew widespread criticism from immigrant communities, especially NRIs, who regularly send money home to India to support family or invest.

In a significant development, the US Senate’s revised version of the bill slashed the remittance tax to just 1 per cent. This is a sharp reduction from the 3.5 per cent rate approved earlier by the House of Representatives. The remittance tax relief will only apply to non-exempt transfers made after December 31, 2025, giving ample time for NRIs and other non-citizens to plan.

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Boon For Working Indians In US

For Indian tech professionals, healthcare workers, students, and entrepreneurs living in the US, this reduction could mean thousands of dollars saved annually. With over $17 billion in remittances sent from the US to India each year, even a small percentage tax would have amounted to a significant financial burden for many.

The revised bill is being hailed as a balanced compromise, satisfying fiscal conservatives in the US government while easing pressure on immigrant workers who often support families across borders.

What Is ‘One Big Beautiful Bill’?

Spanning more than 1,100 pages, the “One Big Beautiful Bill” is a comprehensive economic and immigration reform package rooted in Donald Trump’s America First agenda. It includes broad tax reforms, government spending cuts, and measures to curb illegal immigration.

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The remittance tax provision was introduced as part of an effort to hold non-citizens financially accountable for using US resources while sending money abroad. However, mounting opposition led to multiple revisions.

The Bottom Line

For now, Trump’s “Big Beautiful Bill” appears to offer a much-needed breather for the Indian community in the US, many of whom feared financial strain from the original 5 per cent remittance tax. The final version still awaits full Senate approval, but the reduced tax signals a more immigrant-friendly turn, at least in economic terms.