Washington DC, May 16 -- US President Donald Trump's proposed legislation - the "One Big Beautiful Bill Act" - is raising alarm among Indian professionals in America due to a controversial clause that seeks to tax cross-border remittances.

While the bill is pitched as a sweeping reform combining tax breaks, reduced public expenditure, and tighter border control, it also outlines a 5% levy on all outward remittance transactions, with few exceptions.

The proposed tax could particularly hit Indian workers in the US, who currently contribute the largest share of remittances to India.

The bill mandates that the 5% tax be collected by the remittance service provider - typically a US bank - at the time of the transaction.

These institutions ...