The United States has proposed a 5% tax on remittances sent by non-citizens.

According to a report from Jin10 on May 17, citing India CNBC18, for many Indian families, money sent back by their children from the United States is a means of livelihood. However, these families may feel a bit shocked when they see their account balances dwindling. This is because the U.S. has proposed a new tax specifically targeting these remittances. A U.S. bill proposes to impose a 5% tax on remittances sent from the U.S. to other countries. Indians are one of the top three immigrant groups in the U.S., with nearly 2.3 million Indians working in the U.S. through various visa programs. These Indians are one of the largest sources of remittances to India. In 2023 alone, they sent back over $23 billion. However, if the new bill is passed, the impact will not be limited to H-1B, F-1 visa holders, and green card holders. The proposed tax will also apply to any income earned by non-resident Indians from investments or stock options in the U.S.