“The effects of the ever …”: The financial advisor warns the transfer tax plan in the United States of the economy in India

A new Republican tax proposal sparked a warning between the NRIS (NRIS) in the United States. The bill was presented on May 12, 2025, and includes a controversial condition: 5 % tax on transfers international funds made by non -citizens. For millions of NRIS who routinely send money to their families in India, this represents a sudden and sharp reflection in US tax policy.

This leaves NRIS with a small space for maneuver. Whether the use of traditional banks or NR/NRO accounts, 5 % fees apply in all areas. Sending money to the house now means accepting a compact cost.

Sherfastava, founder and director of the Al -Hikma Fund, has expressed strong concerns about the proposed American tax. It is believed that the 5 % tax on external transfers can deal with NRIS’s investment in Indian assets and the Indian economy.

“It will be difficult for NRIS to buy real estate and stocks in India,” has posted Shrivastava on X (officially Twitter). “The United States is likely to apply 5 % to NRIS transfers. This means that NRIS is sitting in us, if they send money abroad, it will pay an additional tax of 5 %.”

This varied with the 20 % Indian tax collected in the source (TCS) for residents who send money abroad, noting that “the point is: every country that tries to protect its capital flow.”

He warned that its effects are long. “NRIS bought Indian assets strongly (directly from real estate to stocks) … US account for about 28 % of all our remittances. This is close to $ 32 billion. To put this in the context: the education budget in India is $ 15 billion.”

Shrivastava warned that if these transfers are slow, the effects of ripple may be deep. “When an additional layer of taxes is placed, it is likely to send less money.”

He added that addressing the wider macroeconomic impact, “this affects our foreign reserves. NRIS helps India widely: it is easy to clean its contributions aside. However, if they have a less investment incentive due to these taxes, the effects of it will be.”

India, which receives an estimated $ 83 billion of transfers annually – will feel many of the United States – the greater burden. Under the new policy, $ 5,000 of everything has been sent home. This discount strikes at the heart of daily financial obligations, from family care and education to real estate investments.