US President Donald Trump’s administration plans to impose 5% tax on the amount to be sent by Indians to India from America. This means that sending their family home can be even more expensive for Indians living in America. According to estimates, the implementation of this tax may increase the burden of US $ 1.6 billion (about 13.3 thousand crores) annually on Indians living in the US. This figure is based on the 2023-24 figures of the Reserve Bank of India (RBI). Trump is going to introduce this bill soon, and its influence will include more than 4 crore people, including Green Card holders and Indians living in the US on H-1B visa.

5% tax excise duty proposal

The Trump administration has proposed that 5 percent tax excise duty should be imposed on the amount sent by Indians. This tax will affect around four crore people with a green card and H-1B visa, but it will not affect American citizens.

The amount coming to India reaches $ 118.7 billion

According to a report published in the Reserve Bank of India (RBI) March Bulletin, the amount of money in India has increased from $ 55.6 billion in 2010-11 to about $ 118.7 billion in 2023–24.

What did RBI say?

According to the RBI post, America’s contribution increased from 23.4% in 2020-21 to 27.7% in 2023-24. On this basis, a total of $ 32.9 billion wealth came to India from the US, and 5 percent of its $ 1.64 billion will be affected under the proposed tax of Trump administration.

India at the top position to get external funds

According to the RBI, the major use of funds sent from abroad to India is used for the maintenance of families, so increasing its cost can have social and economic effects. According to the World Bank, India is at the forefront of receiving funds from outside since 2008, and India’s share has now increased from 11% to 14%.

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