Remittance Tax Reduced
The Remittance Tax has been reduced for NRIs (Non-Resident Indians) living in the US. Previously, this tax was 3.5%, but after approval with 51 votes against 49, it has been reduced to 1%. This will make it easier for Indians in the US to transfer money to India, as the tax has now been significantly lowered.
Impact of the Change
If you are an Indian residing in the US and wish to transfer money to India using cash, money orders, cashier’s cheques, or other physical methods, you will have to pay a 1% remittance tax. To avoid this, you will need to send money via a US-issued debit or credit card or through a financial institution account. The new changes do not include transfers made from accounts held in banks and other financial institutions. Similarly, transfers made via US-issued debit and credit cards are also excluded from this provision.