The US Congress has approved President Donald Trump’s major legislation known as the One Big Beautiful Bill.
This 900-page bill is not only important for America but is also expected to have a strong impact on India and Indian immigrants (NRIs).
After the approval of this government spending bill, attention has now turned to how it will affect not just the US, but countries around the world. In particular, the money sent or invested by NRIs in India is likely to be affected in the future.
Earlier, the Trump administration had proposed a 5% tax. But in the final version of the bill, it has been reduced to just 1%.
This tax will begin on January 1, 2026. However, bank transfers and card payments will not be taxed.
Still, NRIs who frequently send money or large amounts to India will need to rethink their financial plans.
This could affect investments in real estate, money sent to families, and other financial activities.
No New Tax on Rental Income
There is no new tax on rental income from foreign countries. The rules remain the same.
If a green card holder or a US citizen earns rental income from property in India, they can still claim credit in the US for taxes paid in India.
Crackdown on Illegal Immigrants
Trump’s bill also includes plans for the largest deportation operation ever. Around 18,000 Indian citizens living illegally in the US have been identified.
The Indian government has agreed to take them back and help break human trafficking networks.
It’s estimated that 3% of the US population are illegal immigrants, and among them, about 2.2 lakh to 7 lakh are believed to be Indians.
Higher Charges for These Services
Staying legally in the US is now going to cost more. Applying for asylum will cost $100. A work permit will now cost $550.
If someone crosses the border illegally, they will have to pay a fine of $5,000. Even people with low income will not get any fee exemptions.
President Trump’s focus remains on national security, stopping illegal immigration, and taxing money sent abroad.
This directly impacts countries like India, where people move to the US or invest. The new law will affect the remittance flow to India,
and living in the US will now become more difficult and costly for Indian students, professionals, and families.
