<ul><li>US proposes a tax on international money transfers made by non-US citizens, excluding US citizens.</li><li>India could face a significant impact as it received $120 billion in remittances in 2023-24, with a large portion originating from the US.</li><li>A 5% tax on remittances could lead to a $12-18 billion annual shortfall for India, potentially affecting the rupee's value and putting pressure on the Reserve Bank of India.</li><li>Millions of Indian families in states like Kerala, Uttar Pradesh, and Bihar rely on remittances for essential expenses, and a decline in these flows could adversely impact household consumption.</li></ul>

US remittance tax plan may hit Indian households, rupee: GTRI

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