India, May 21 -- The Senate on Tuesday unanimously passed President Donald Trump's "No Tax on Tips" Act in a 100-0 vote. The bill allows workers to deduct 100% of their reported tips, including those received in cash, by credit or debit card, or by check, from their federal income taxes.

The tax break would be temporary, lasting through 2028, and would apply to employees and independent contractors in jobs where tipping is common, such as restaurant and hospitality workers. Workers earning $160,000 or more in 2025 would not be eligible.

As per the bill, employers can get a tax credit for payroll taxes paid on tips in beauty and personal care jobs, such as hair, nails, and spa services. This adds to the current credit for tips in food an...