Trump’s Tax Reforms: Potential Gains for India and the Indian Diaspora

President Donald Trump’s ‘One Big Beautiful Bill’ is poised to positively impact the Indian diaspora residing in the United States. A key advantage for Indian citizens and those of Indian origin is the proposed reduction in taxes. The revised bill, effective June 27th, reduces the tax on international money transfers from the original 5% to a significantly lower 1%. This is a considerable relief for the Indian professionals and the NRI community in the US. This tax provision will apply to all types of remittances such as cash, money orders, and cashier’s checks. About 4.5 million Indians living in the US, including approximately 3.2 million Indian-origin individuals, are expected to benefit from this amendment. The bill clearly states that every international money transfer will be taxed at 1% of the total amount, payable by the sender. Furthermore, the bill also proposes tax exemptions for remittances made from financial institutions and those funded by US-issued debit or credit cards.