It’s good news for the over 2.9 million NRIs, who have made the US their home. The NRI community in the US need not have to pay the remittance tax if they send money through accounts with designated US banks or use debit or credit cards issued there, as the final draft of the ‘One Big Beautiful Bill Act’ now proposes slashing the remittance tax to 1% from 3.5%.

Despite earlier versions suggesting a 5% levy, which was later brought down to 3.5% in the House proposal, this revised proposal of 1% is indeed a major reduction.

The Senate’s latest draft, however, limits the 1% remittance tax only to physical transfers like cash, money orders, or cashier’s cheques. Other transfers such as those made through bank accounts, credit or debit cards, and official financial channels, remain tax-free.

The ‘One Big Beautiful Bill Act’ is likely to be passed on July 4, and come into effect on January 1, 2026. – Image by freepik – editor@nrifocus.com