The U.S. plans to impose a 5% tax on remittances, affecting 2.3 million Indian immigrants

According to Deep Tide TechFlow, on May 17, the U.S. proposed a new tax bill that aims to impose a 5% tax on remittances sent from the U.S. to other countries. India is one of the top three immigrant groups in the U.S., with approximately 2.3 million Indians working in the country.

In 2023, Indian immigrants' remittances exceeded $23 billion. If the bill passes, those affected will not only include H-1B, F-1 visa holders, and green card holders, but also Indians who do not reside in the U.S., as their income earned through investments or stock options in the U.S. will also be taxed.