H-1B Visa Stamping Delays Trap Thousands of Indians: Jobs, Salaries, and Taxes at Risk

Headache for Indian H-1B holders! Visa stamping delays leave many stuck

For Indian tech professionals who thought they’d cleared the biggest hurdle—the H-1B lottery—a new and equally daunting challenge has emerged: H-1B visa stamping delays. With US consulates in India pushing interview appointments by three to six months or more, thousands of approved H-1B workers are stuck in limbo, unable to re-enter the United States. The consequences? Job losses, forced pay cuts, dual tax complications, and mounting anxiety for families who’ve already uprooted their lives .

This isn’t just a bureaucratic inconvenience—it’s a full-blown professional and financial crisis. While the US Department of State cites “unprecedented demand” and staffing shortages as reasons for the backlog, affected workers say the real cost is being paid in careers derailed and livelihoods destabilized.

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The Stamping Bottleneck: Why Appointments Are Delayed

After an H-1B petition is approved by USCIS, foreign nationals must complete visa stamping at a US consulate before re-entering the country. In India—the largest source of H-1B workers—this final step has become a major choke point.

As of January 2026, wait times for H-1B stamping appointments are alarmingly long:

  • Hyderabad: 14–18 weeks
  • Chennai: 12–16 weeks
  • Delhi: 10–14 weeks
  • Mumbai: 13–17 weeks
  • Kolkata: 15+ weeks

These delays stem from a perfect storm: record-high H-1B approvals in FY2025, reduced consular staffing post-pandemic, and limited appointment slots due to security screening protocols . Unlike emergency medical or student visas, H-1B applicants rarely qualify for expedited processing—leaving them stranded even with valid approvals.

Real-World Impact: Job Loss and Salary Cuts

Many H-1B workers traveled to India for holidays, family emergencies, or weddings—assuming they could return within weeks. Instead, they’re facing months of exile. US employers, operating under tight project deadlines and budget constraints, are growing frustrated.

Reports from affected professionals reveal harsh realities:

  • Some companies have placed employees on unpaid leave after 30 days of absence.
  • Others have issued formal warnings: “Return by [date] or your position will be terminated.”
  • A few firms have slashed salaries to “India-level” rates for those working remotely, citing cost arbitrage policies.

“I have a valid H-1B approval until 2028, but my employer says they can’t keep me on payroll indefinitely,” shared one software engineer from Bangalore, who asked to remain anonymous. “I’m losing my US job—not because I failed, but because the system failed me.”

The Hidden Tax Trap: Working Remotely from India

Another lesser-known consequence? Tax complications. If an H-1B holder works remotely for a US company while physically present in India for more than 182 days in a financial year, they may become liable for Indian income tax on their global earnings .

This creates a double-bind:

  1. The US employer continues paying US wages (with US tax withholding).
  2. The Indian tax department may demand additional income tax, plus potential penalties for non-declaration.

Chartered accountants warn that many professionals aren’t aware of this risk until it’s too late. “They think they’re just ‘waiting out’ the visa delay,” says Priya Desai, a Mumbai-based tax consultant. “But if they’re logging into work from India for months, they’ve triggered Indian tax residency rules.”

Which Consulates Are Most Affected?

While all Indian consulates face backlogs, Hyderabad—which handles the highest volume of tech worker applications—has the longest wait times. Chennai follows closely, partly due to its role as a hub for IT professionals from Tamil Nadu and neighboring states.

Ironically, applicants who try to book slots in other countries (like Canada or Mexico) often find those centers are reserved for local residents or require complex entry visas—making “visa tourism” impractical for most Indians.

What H-1B Holders Can Do Right Now

If you’re stuck in India, experts recommend these steps:

  1. Check appointment availability daily: Slots occasionally open due to cancellations. Use the official US Visa Service portal.
  2. Request an emergency appointment: If your job is at immediate risk, submit documentation (e.g., employer termination notice) for expedited review.
  3. Consult a tax advisor: Understand your Indian tax obligations if working remotely. File proactively to avoid penalties.
  4. Negotiate with your employer: Propose a temporary India-based contract or unpaid leave with job retention guarantees.
  5. Monitor [INTERNAL_LINK:h1b-visa-updates-india] for real-time policy changes.

Employer Responsibilities and Alternatives

US companies aren’t powerless. Progressive employers are exploring alternatives:

  • Transferring projects to India entities: Allowing employees to work legally under an Indian payroll.
  • Extending grace periods: Using discretionary leave banks to retain talent.
  • Lobbying for policy fixes: Industry groups like NASSCOM and US Chamber of Commerce are urging the State Department to add temporary visa officers in India .

However, smaller firms without global structures often lack these options—placing the burden squarely on the employee.

Conclusion

The H-1B visa stamping crisis is more than a logistical glitch—it’s exposing the fragility of global talent mobility in an era of strained diplomatic resources. For thousands of Indian professionals, the American dream is on hold, not by choice, but by systemic delay. Until the US government scales up consular capacity or introduces digital pre-clearance options, this bottleneck will continue to jeopardize careers, strain employer-employee trust, and undermine the very purpose of the H-1B program: to attract and retain top global talent.

Sources

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