'It'll get harder for NRIs to buy property, stocks in India': Finfluencer warns $32 bn is at risk - BusinessToday
'It'll get harder for NRIs to buy property, stocks in India': Finfluencer warns $32 bn is at risk
Financial analysts warn that this new burden will discourage NRIs from sending frequent or large remittances
A proposed 5% tax on overseas money transfers by non-citizens could soon make it far more expensive for NRIs in the US to send funds back to India, putting a critical $32 billion inflow at risk.
Akshat Shrivastava, founder of Wisdom Hatch and a leading personal finance commentator, called out the looming impact, warning on X: “It will get harder for NRIs to buy property & stocks in India.” Shrivastava highlighted the scale of the threat, noting that US NRIs contribute nearly 28% of India’s total remittances—double the size of India’s education budget.
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The bill, backed by Donald Trump and introduced in the US House of Representatives, would apply a 5% levy on all international money transfers by non-citizens, regardless of amount or purpose. Whether for supporting family, buying property, or investing in Indian markets, every dollar remitted would face this additional tax.
Currently, India imposes a 20% Tax Collected at Source (TCS) on outward remittances by its residents, aimed at controlling capital outflows. The US proposal mirrors this strategy. “Every country is trying to protect its outflow of capital,” Shrivastava noted, linking the move to a global tightening of cross-border money flows.
Financial analysts warn that this new burden will discourage NRIs from sending frequent or large remittances, with direct consequences for India’s foreign exchange reserves and real estate and equity markets. With no exemptions or thresholds, even small routine transfers will be hit.
Financial advisors are now urging NRIs to complete major remittances before the bill becomes law, as compliance loopholes will be minimal.
A proposed 5% tax on overseas money transfers by non-citizens could soon make it far more expensive for NRIs in the US to send funds back to India, putting a critical $32 billion inflow at risk.
Akshat Shrivastava, founder of Wisdom Hatch and a leading personal finance commentator, called out the looming impact, warning on X: “It will get harder for NRIs to buy property & stocks in India.” Shrivastava highlighted the scale of the threat, noting that US NRIs contribute nearly 28% of India’s total remittances—double the size of India’s education budget.
Related Articles
The bill, backed by Donald Trump and introduced in the US House of Representatives, would apply a 5% levy on all international money transfers by non-citizens, regardless of amount or purpose. Whether for supporting family, buying property, or investing in Indian markets, every dollar remitted would face this additional tax.
Currently, India imposes a 20% Tax Collected at Source (TCS) on outward remittances by its residents, aimed at controlling capital outflows. The US proposal mirrors this strategy. “Every country is trying to protect its outflow of capital,” Shrivastava noted, linking the move to a global tightening of cross-border money flows.
Financial analysts warn that this new burden will discourage NRIs from sending frequent or large remittances, with direct consequences for India’s foreign exchange reserves and real estate and equity markets. With no exemptions or thresholds, even small routine transfers will be hit.
Financial advisors are now urging NRIs to complete major remittances before the bill becomes law, as compliance loopholes will be minimal.
