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PERM Suspension Could Disrupt Green-Card Plans for Indian Tech Workers
The United States has paused some companies from using a process that can help workers get green cards.
This may make it harder for some Indian technology workers to get permanent residency through their jobs.
It does not automatically cancel their existing H-1B visas.
If someone moves back to India, they usually do not have to close their US retirement account.
But taking money out early can mean extra taxes, and other tax rules may apply.
They may also be able to keep US stocks, bank deposits, or property.
Banks and investment companies might ask them for new forms or limit their accounts.
They should also check what they need to report and pay in India and the United States.
The Trump administration suspended several technology and IT outsourcing companies from the PERM labour certification programme.
The suspension does not automatically revoke existing H-1B visas, but it may interrupt employer-sponsored green-card applications.
H-1B workers may generally stay in the United States for up to six years, with possible extensions in qualifying cases.
Workers who leave the United States can generally keep a 401(k), though withdrawals and tax treatment depend on their circumstances.
Returning workers may retain US investments and property, but should check account requirements and report foreign assets and income where required.
- Who
- The Trump administration suspended several technology and IT outsourcing companies from the PERM programme; Indian technology workers may be affected.
- What
- The suspension could disrupt some employer-sponsored green-card applications, while the article explains how returning workers may manage US retirement accounts, investments, and property.
- Where
- The United States and India.
- When
- The suspension was announced on Thursday; the article does not give a calendar date.
- Why
- PERM is an important employer-sponsored step toward permanent residency for many foreign workers.
Key facts
- Programme affected
- Permanent labour certification programme (PERM)
- Companies named
- Microsoft, Infosys, Cognizant, Tata, Wipro, HCL Technologies, Capgemini, and Adobe
- H-1B duration
- Up to six years: an initial period of up to three years and a possible extension of up to another three years
- Possible H-1B extension
- An additional one-year extension may be available if a qualifying PERM or I-140 was filed at least 365 days before the extension would begin.
- 401(k) early withdrawal
- Withdrawals before age 59.5 may incur a 10% additional US tax unless an exception applies.
- US tax withholding
- A 30% withholding rate generally applies once the account holder is no longer treated as a US tax resident; treaty relief may be available for qualifying regular pension payments with Form W-8BEN.
- Indian tax deferral option
- The article says eligible individuals may defer Indian taxation of foreign retirement account earnings under Section 158 of the Income-tax Act, 2025, by filing Form 40 by the applicable return due date.
Quotes
Siddharth Batra
Advocate at the Supreme Court of India
“Legally, there is presently no prohibition on these companies employing foreign workers in the United States on otherwise valid H-1b visas. What has been suspended is the PERM process, which, for a large category of employees, is a crucial step in moving from temporary employment status towards permanent residency.”
livemint.com
Sources
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