One of the biggest takeaways from the US Congress clearing President Trump’s “One Big Beautiful Bill” is its impact on remittances—the money NRIs send to India. Originally, a 5 percent tax was proposed on all foreign remittances. However, the final version of the bill has reduced this to just 1 percent.
This is still important for Indian-origin people in the US, especially for those who make frequent or high-value transfers. According to experts, bank and card-based transfers will remain exempt, but NRIs should relook at their financial planning.
These changes will come into effect from January 1, 2026.
No Change in Tax on Rental Income from India
There’s some relief for those earning rental income in India while living in the US. The bill does not change existing rules around this.
NRIs who own property in India and pay tax on rental income can still claim tax credit in the US to avoid double taxation. So, nothing changes here for now.
Border Crackdown and Deportation Risk
The bill supports Trump’s hardline immigration policies, with billions of dollars allocated for stricter border control. This includes plans for what he calls the “largest mass deportation” in US history.
The US has already identified around 18,000 Indians who entered the country illegally. The Indian government has agreed to take them back and break the human trafficking networks involved.
Estimates say unauthorised Indians in the US range from 2.2 lakh to 7 lakh, making them the third-largest group after Mexicans and Salvadorans.
Higher Fees for Legal Applications
The bill also increases fees for staying in the US legally. For example:
Asylum application: USD 100
Work permit (EAD): USD 550
Temporary Protected Status: USD 500
Humanitarian Parole: USD 1,000
Illegal border crossing fine: USD 5,000
There will be no waivers for low-income applicants. Cuts to welfare programs like Medicaid could also hurt low-income immigrant families.
