USA is planning a new rule

[SG_13]

@raoawesome

We also make our citizens pay TCS for forex remittance. 5% for paying foreign abroad University fees and 20% for others.

It’s good only, TCS for remittance never made any sense in first place. This rule by US will force Indian govt to rethink about TCS

There is a difference between the proposed tax levy on remittances, by the US, and the TCS levied by India.

The TCS levied by India is tax deductible/refundable, unlike the proposed excise tax by the US.

The excise tax being an indirect tax, is nothing but an additional expense to legal immigrants, which will not get adjusted against their tax liability or be refunded.

So, this proposed move, will not only affect the NRIs, but will, to some extent affect our current account balance, as inward remittances form a major chunk of it.

@niftymonk

Let’s hope common sense wins not just politics

Trump and common sense are poles apart.

PS:

Something i remembered on the topic of inward remittances.

@Meher_Smaran

global differences in incomes and purchasing power parity, a little can go a long way. On average, migrant workers send a relatively small portion of their incomes — around 15% — back home. But this can be huge. 15% of the average American paycheck, for instance, is almost six times the income of the average Indian. These differences are so large that receiving remittances from abroad can completely change people’s lives back home.

@Meher_Smaran