In a move that will hit some 10 lakh Indian IT professionals and asizable chunk of the country's BPO industry, President Barack Obama hasunveiled new proposals to end tax breaks for American companies that shippedjobs overseas to countries like India.

"For years, we've talked aboutending tax breaks for companies that ship jobs overseas and giving tax breaksto companies that create jobs here in America. That's what our budget willfinally do," Obama said yesterday at the White House announcing theinternational tax policy reform.

The new tax laws are expected to hit countries like India, China andPhilippines, where US companies have been outsourcing their work. Nearly 60 percent of Indian IT-Business Process Outsourcing industry caters to US companies,according to latest figures. India's BPO industry employs over 17 lakhprofessionals.

Hitting hard at the current taxation system, to which he had been very criticalsince his election days and as a Senator, Obama said the current tax code was"full of corporate loopholes" which made it easier for Americancompanies to flout the law.

"It's a tax code full of corporate loopholes that makes it perfectly legalfor companies to avoid paying their fair share. It's a tax code that makes itall too easy for a number -- a small number of individuals and companies toabuse overseas tax havens to avoid paying any taxes at all.

"And it's a tax code that says you should pay lower taxes if you create ajob in Bangalore, India, than if you create one in Buffalo, New York,"Obama said.

Obama said he wants US companies to remain most competitive in the world."But the way to make sure that happens is not to reward our companies formoving jobs off our shores or transferring profits to overseas taxhavens," he said.

He also announced a set of proposals to crack down on illegal overseas taxevasion, close loopholes, and make it more profitable for companies to createjobs here in the US, Obama said his series of tax reforms would save $210 billionin the next 10 years.

Under new measures, American companies would also have to disclose before theIRS details of the income American citizens are generating in overseasaccounts.

"For years, we've talked about stopping Americans from illegally hidingtheir money overseas, and getting tough with the financial institutions thatlet them get away with it," he said.