India’s 3.5% Remittance Tax in 2025? What NRIs Must Know Now #indiatax

#IndiansInUSA #IndiaRemittanceTax #NRIFinance

Indians in the U.S. — Is India now charging you 3.5% just to send money home in 2025?
Whether you’re supporting parents, paying tuition, or investing in India — this new proposed remittance tax might hit your wallet harder than you expect.

In today’s episode of Immigration Talk Show, we explain how the new 3.5% remittance tax could impact Indian Americans, NRIs, and OCI holders who regularly send money to India. What’s changing? Who is targeted? Can you legally reduce the burden? And is this even final yet?

If you’ve ever wired money from the U.S. to India, this video is for you. We break down what you should know, what you should ask your CA or CPA, and how you can plan better for the rest of 2025.

Key Questions Covered:
Is this 3.5% remittance tax already in effect or still a proposal?

Who does this apply to — NRIs, green card holders, H-1Bs?

Are remittances for parents, kids, or religious donations included?

Any legal exemptions for certain transfers?

What are the best ways to reduce tax impact or avoid penalties?

Title: India’s Tax Collected at Source (TCS) on Remittances
India’s Ministry of Finance has proposed expanding TCS on LRS (Liberalised Remittance Scheme) transactions, including foreign remittances, with a proposed 3.5% rate for certain remittance categories.
Source: https://incometaxindia.gov.in

Title: RBI Liberalised Remittance Scheme Explained
The Reserve Bank of India allows Indian residents to remit up to USD 250,000 abroad annually, but such remittances now increasingly fall under tax monitoring.
Source: https://rbi.org.in/scripts/FAQView.aspx?Id=115

Title: NRI Taxation Rules for Sending Money to India
Leading tax advisory firms are warning Indian Americans and NRIs to consider new remittance tax rules while sending money, especially large transfers or gifts.
Source: https://cleartax.in/s/nri-taxation-india

Disclaimer: This video is for informational purposes only and may include news, expert opinions, personal experiences, or attorney commentary. It does not constitute legal advice. Any legal insights provided are general in nature and may qualify as attorney advertising. Viewing this content does not create an attorney-client relationship. Always consult a licensed professional for personalized immigration guidance.