Washington12 minutes ago
- Copy link
Sending money earned in America will be taxed at 3.5% tax. The US House of Representatives has passed the ‘One Big, Beautiful Bill Act’ yesterday i.e. on 22 May. In this bill, there is a provision for taxing the money earned by foreign workers in the US to send tax on sending them to their country.
This new policy of US President Donald Trump may have the biggest impact on India, as Indian migrants send the most remedies from America. Remittens i.e. money sent by migrants to their country. It will be implemented from 1 January 2026 after Senate approval.
The US House of Representatives has passed the ‘One Big, Beautiful Bill Act’ yesterday i.e. on 22 May.
Question 1: What is Donald Trump’s “One Big Beautiful Bill”?
answer: This is a tax bill, under which foreign workers working in the US will be taxed on the money to be sent to their country. Initially the tax rate was 5%, but now it has been reduced to 3.5%.
Question 2: 1 lakh rupees, how much tax will be charged on Remittens? answer: Calculation:
Tax Rate: 3.5% tax = 1,00,000 × 3.5% = 1,00,000 × 0.035 = 3,500 rupees
Migrants will have to pay Rs 3,500 as tax to send Rs 1,00,000.
Question 3: What will be the impact of tax on India’s annual American Remedies? answer: Total Remittens: 30 billion dollars
Tax Rate: 3.5%
Tax = 30 billion × 0.035 = 1.05 billion dollars (about 8,750 crore rupees)
First at 5%: 30 billion × 0.05 = 1.5 billion dollars (about 12,500 crore rupees)
India will suffer less than $ 0.45 billion (about Rs 3,750 crore) at a 3.5% tax rate, but still this amount is important for the economy.
Question 4: Why will this tax have the biggest impact on India?
answer: India receives the most remedies from the US, and Indian migrants work in large numbers there. In 2023-24, Remittens were about 130 billion dollars. Out of this, 30 billion dollars i.e. 23.4% comes from America.
The implementation of 3.5% tax will cost an additional burden of $ 1.05 billion (Rs 8,750 crore) on a $ 30 billion remedy, which will affect India’s economy. This wealth promotes India’s economy, real estate, stock market and conjuncation.
Question 5: Can other countries also copy this tax policy?
answer: Yes, many countries can implement remedies tax inspired by the policies of America. If Europe or other countries also apply 2-3% tax, then it will have a profound impact on India.
Question 6: Will Indian migrants stop going to America?
answer: No, Indian migrants will not stop going to America, as employment opportunities are attractive there.
Question 7: How can India deal with this situation?
answer: Trade deal with America: India should talk for exemption or relief on Remedy Tax.
Focus on alternative countries: migrants will have to find opportunities in countries where tax is low.
Domestic policies: Domestic investment and employment generation will have to be emphasized to reduce dependence on remedies.
Source link
[ad_3]
