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Arab Times
13-06-2025
- Business
- Arab Times
Remitting Money to India Could Cost NRI's ₹30,000 More
NEW DELHI, Jun 13: Remittances have long served as a cornerstone of India's economy, regularly offsetting nearly half of the country's merchandise trade deficit. More stable than foreign direct investment (FDI), these cross-border financial flows have consistently outpaced FDI inflows, making them one of the most reliable sources of external funding for India. According to World Bank estimates, Indian expatriates remitted a record $119 billion in 2023. The United States remained the single largest source, contributing 27.7% of India's total remittances in FY24, approximately $33 billion. However, a newly proposed U.S. tax on remittances threatens to disrupt this critical pipeline. The U.S. House of Representatives recently passed a bill that would impose a 3.5% tax on all foreign money transfers by non-citizens. This category includes H-1B and L-1 visa holders, international students on F-1/J-1 visas, green card applicants, and other temporary residents. If approved by the Senate, the tax will take effect on January 1, 2026. 'US-based Indians sent $33 billion back home in FY24. But from 2026, every dollar may attract an extra 3.5% remittance tax,' noted TaxBuddy, an income tax and e-filing platform. A Costly Change for Indian Households The financial implications for Indian-origin residents in the U.S. are significant. Under the proposed tax, $3.50 would be deducted for every $100 remitted. A typical transfer of $10,000 would result in a $350 loss—funds that would otherwise go toward education, medical expenses, housing, or savings for families in India. While the measure is intended to help reduce the U.S. fiscal deficit, its economic aftershocks could be felt across borders. The estimated Rs 2.75 lakh crore ($33 billion) in annual remittances from the U.S. could translate into nearly Rs 10,000 crore in new tax revenues for Washington, but at a considerable cost to Indian senders and recipients. India's Economy at Risk If enacted, the tax could reshape India's remittance economy, especially as over 5 million Indian immigrants in the U.S. stand to be affected. These individuals are among the highest-earning NRI (Non-Resident Indian) groups and play a crucial role in driving consumer spending, NRE (Non-Resident External) deposit growth, and India's foreign exchange reserves. To illustrate the personal cost: if an individual sends Rs 1 lakh to India after 2026, only Rs 96,500 would be received—the remainder deducted as tax by the U.S. government. This figure excludes additional transaction or banking fees. Experts estimate that the proposed tax could lead to a $1.16 billion drop in annual remittances from the U.S., triggering a twofold multiplier effect and an indirect economic impact of nearly Rs 19,886 crore on sectors such as real estate, banking, and retail. What Can NRIs Do Now? Although the bill has yet to pass the Senate, Indian expatriates still have time to prepare. Key considerations include: Remit early: Transfers made before January 1, 2026, will not be subject to the new tax. Monitor legislative progress: The Senate is expected to take up the bill during the June–July 2025 session. Look for exemptions: It remains unclear whether remittances for education, medical expenses, or salary transfers will be exempt. Further guidance is anticipated after Senate deliberations. What's Next? Should the bill become law, it could fundamentally alter how Indian families manage cross-border finances. NRIs may seek alternative money transfer mechanisms or adjust their remittance behavior to minimize costs.
Time of India
07-06-2025
- Business
- Time of India
Amid H-1B uncertainty and layoffs, immigration experts say demand for L-1 and O-1 visas has gone up as they do not have ...
Representative Image Indian professionals and their employers are increasingly exploring alternatives to H-1B visas, such as L-1 and O-1 visas, amid stricter scrutiny of H-1B applications and ongoing tech layoffs in the US, according to immigration experts cited by the Economic Times. Demand for EB-5 immigrant investor visas has also surged, with a 50% increase since January 2025, noted Sukanya Raman, country head - India & GCC practice team at Davies & Associates LLC. 'These are in current status for Indian nationals, meaning visas are available, and they can receive authorization and travel documents in 3-6 months,' she told ET, highlighting their appeal for Indian families on H-1B visas whose children are nearing 21 and at risk of aging out. USCIS data shows a 27% year-on-year drop in shortlisted H-1B visa applications this year, the lowest since FY21, with the US approving 85,000 H-1B visas annually, of which Indians secure about 70%. The new Trump administration's tightened H-1B scrutiny since early 2025, combined with layoffs at tech giants like Microsoft, Google, and Intel, has heightened anxiety among Indian professionals. 'Our clients are more fearful, especially about international travel and visa 'stamping' at consular posts abroad,' Joel Yanovich, an attorney at Murthy Law Firm, told the publication. 'I don't think a day goes by without clients asking if it's safe to travel.' This has driven demand for L-1 visas (for intracompany transfers) and O-1 visas (for individuals with extraordinary abilities in fields like science, arts, or business), which lack the annual caps of H-1B visas. 'Part of this spike is seasonal, tied to those not selected in the H-1B lottery, but it also reflects employers and individuals aiming to avoid anticipated H-1B scrutiny,' Yanovich said. Some companies are transferring employees to countries like Canada temporarily to qualify for L-1 visas, which can lead to EB-1C green cards for managers, Raman explained. Others are pursuing EB-2 NIW (National Interest Waiver) visas for those with advanced degrees working in the US national interest, she added. Gnanamookan Senthurjothi, a US immigration attorney, told ET that the number of people seeking assistance for these visa options has risen in recent months.
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Business Standard
07-06-2025
- Business
- Business Standard
Tighter H-1B rules, tech layoffs push Indians to alternative US visas
As scrutiny around H-1B work visa applications intensifies and tech layoffs continue to rattle the US job market, Indian professionals and their employers are increasingly exploring alternative visa routes to live and work in the US, reported The Economic Times. Among the most sought-after options now are the L-1 and O-1 non-immigrant visas. Simultaneously, there's a significant uptick in interest for the EB-5 immigrant investor visa programme. 'These trends aren't entirely new, but we've seen a sharp rise in the number of people reaching out over the past few months,' Gnanamookan Senthurjothi, a US immigration attorney, told The Economic Times. The shift comes as the US, under the Donald Trump administration, has ramped up its scrutiny of H-1B visa applications since the start of the year. According to recent data from the United States Citizenship and Immigration Services (USCIS), H-1B visa approvals this year dropped by 27 per cent Year-on-Year—marking the lowest since the pandemic-hit FY21. Each year, the US allots 85,000 H-1B visas to foreign professionals, with Indians accounting for nearly 70 per cent of the total. However, a wave of layoffs across major tech firms including Microsoft, Google, and Intel has deepened uncertainty among Indian workers in the US. 'Our clients have become more fearful and anxious, particularly regarding international travel and visa 'stamping' at consular posts abroad,' said Joel Yanovich, attorney at the Murthy Law Firm. 'I don't think a day goes by where I don't have a client or two asking me whether it's safe to travel.' Rise in L-1 and O-1 applications In response to growing apprehensions around the H-1B process, more applicants are turning to L-1 and O-1 visas—both of which do not have annual numerical limits. The L-1 visa facilitates intracompany transfers, while the O-1 visa is designed for individuals with extraordinary ability in fields such as science, arts, or business. 'Part of this [spike in demand] is seasonal, based on people not being selected for the H-1B lottery,' Yanovich said. 'But part of it appears to stem from employers and individuals hoping to avoid the heightened scrutiny they fear the H-1B program may face.' Canada as a staging ground Adding to the shift, companies are also considering temporary assignments outside the US as a strategic move to qualify employees for other visa categories. 'What we are also seeing is that some companies are transferring their employees to countries like Canada or elsewhere outside the US for a short time so that they will qualify for the L-1 visa,' Sukanya Raman, country head – India & GCC practice team at Davies & Associates LLC, was quoted as saying by The Economic Times. This tactic typically applies to professionals in managerial roles who may later transition to the EB-1C visa, which can lead to a green card, she said. There's also rising interest in the EB-2 NIW (National Interest Waiver)—a green card category for individuals with advanced degrees whose work is deemed to benefit the US on a national level. EB-5 investor visa sees surge The EB-5 immigrant investor visa has also seen a notable 50 per cent increase in demand since January 2025, according to Raman. 'These are in current status for Indian nationals, which means that visas are available and applicants can receive their authorisation and travel documents in just 3-6 months,' she noted. 'This allows them to stay in the US legally.' Raman also highlighted a growing number of Indian families on H-1B visas applying for EB-5, particularly when their children are nearing the age of 21 and risk 'aging out'—becoming ineligible to stay as dependents under their parents' visa status.
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Business Standard
07-06-2025
- Business
- Business Standard
Tighter H-1B rules, tech layoffs push Indians to alternate US visas
As scrutiny around H-1B work visa applications intensifies and tech layoffs continue to rattle the US job market, Indian professionals and their employers are increasingly exploring alternative visa routes to live and work in the US, reported The Economic Times. Among the most sought-after options now are the L-1 and O-1 non-immigrant visas. Simultaneously, there's a significant uptick in interest for the EB-5 immigrant investor visa programme. 'These trends aren't entirely new, but we've seen a sharp rise in the number of people reaching out over the past few months,' Gnanamookan Senthurjothi, a US immigration attorney, told The Economic Times. The shift comes as the US, under the Donald Trump administration, has ramped up its scrutiny of H-1B visa applications since the start of the year. According to recent data from the United States Citizenship and Immigration Services (USCIS), H-1B visa approvals this year dropped by 27 per cent Year-on-Year—marking the lowest since the pandemic-hit FY21. Each year, the US allots 85,000 H-1B visas to foreign professionals, with Indians accounting for nearly 70 per cent of the total. However, a wave of layoffs across major tech firms including Microsoft, Google, and Intel has deepened uncertainty among Indian workers in the US. 'Our clients have become more fearful and anxious, particularly regarding international travel and visa 'stamping' at consular posts abroad,' said Joel Yanovich, attorney at the Murthy Law Firm. 'I don't think a day goes by where I don't have a client or two asking me whether it's safe to travel.' Rise in L-1 and O-1 applications In response to growing apprehensions around the H-1B process, more applicants are turning to L-1 and O-1 visas—both of which do not have annual numerical limits. The L-1 visa facilitates intracompany transfers, while the O-1 visa is designed for individuals with extraordinary ability in fields such as science, arts, or business. 'Part of this [spike in demand] is seasonal, based on people not being selected for the H-1B lottery,' Yanovich said. 'But part of it appears to stem from employers and individuals hoping to avoid the heightened scrutiny they fear the H-1B program may face.' Canada as a staging ground Adding to the shift, companies are also considering temporary assignments outside the US as a strategic move to qualify employees for other visa categories. 'What we are also seeing is that some companies are transferring their employees to countries like Canada or elsewhere outside the US for a short time so that they will qualify for the L-1 visa,' Sukanya Raman, country head – India & GCC practice team at Davies & Associates LLC, was quoted as saying by The Economic Times. This tactic typically applies to professionals in managerial roles who may later transition to the EB-1C visa, which can lead to a green card, she said. There's also rising interest in the EB-2 NIW (National Interest Waiver)—a green card category for individuals with advanced degrees whose work is deemed to benefit the US on a national level. EB-5 investor visa sees surge The EB-5 immigrant investor visa has also seen a notable 50 per cent increase in demand since January 2025, according to Raman. 'These are in current status for Indian nationals, which means that visas are available and applicants can receive their authorisation and travel documents in just 3-6 months,' she noted. 'This allows them to stay in the US legally.'
Economic Times
07-06-2025
- Business
- Economic Times
Indians eye other visa routes amid H-1B uncertainty, layoffs
Amid tightened scrutiny of H-1B work visa applications and ongoing tech layoffs in the US, Indian professionals and their employers are increasingly looking at other non-immigrant visas such as L-1 and O-1, immigration experts is also a spike in demand for EB-5 immigrant investor these developments are not new, there has been an increase in the number of people seeking help in the past few months, US immigration attorney Gnanamookan Senthurjothi told new Donald Trump administration has tightened scrutiny of H-1B visas since taking office early this year. According to the data from the United States Citizenship and Immigration Services (USCIS), the number of H-1B visa applications shortlisted this year has declined 27% on year—the lowest since the pandemic-impacted year, the US has been approving 85,000 H-1B visas for foreign workers, with Indians securing close to 70% of these visas. Layoffs by tech majors including Microsoft, Google and Intel have added to the anxiety of Indians working in the US. 'Our clients have become more fearful and anxious, particularly regarding international travel and visa 'stamping' at consular posts abroad,' said Joel Yanovich, attorney at immigration firm Murthy Law Firm. 'I don't think a day goes by where I don't have a client or two asking me whether it's safe to travel.'All this has led to an uptick in demand for L-1 and O-1 visa categories, which do not have annual limits like H-1B. While L-1 visa is for intracompany transfer, O-1 is for those possessing extraordinary ability in the areas including science, arts or business. Visa alternatives 'Part of this (spike in L-1 and O-1 demand) is seasonal, based on people not being selected for the H-1B lottery,' Yanovich said. 'But part of this appears to stem from employers and individuals hoping to avoid the heightened scrutiny they fear the H-1B program may face.'Sukanya Raman, country head - India & GCC practice team at Davies & Associates LLC, said, 'What we are also seeing is that some companies are transferring their employees to other countries such as Canada or somewhere outside of the US for a brief time so that they will qualify for L-visa.'This applies to those in the managerial position and can eventually transition to EB-1C to get the US green card, she are also considering EB-2 NIW (National Interest Waiver), which is for individuals possessing advanced degrees that are working for national interest in the US, Raman demand for EB-5 investor visas has also increased 50% since January 2025. 'These are in current status for Indian nationals, which means that visas are available and can get their authorisation and travel documents in 3-6 months,' Raman said. 'This will allow them to legally stay in the US.'The EB-5 is particularly in demand from Indian families who are currently in H-1B and their children are aging out, which refers to children who are turning 21 before parents get their green card, she said.
