New Delhi, Sept. 9 -- Indian information technology (IT) services companies, the country's biggest employers, earn more than three-fifths (60%) of their revenue from the US. While they have largely avoided US taxes so far, a new bill seeks to change that by taxing all services exported to US companies.

Mint explains what this means for India's IT sector.

On 5 September, Ohio Senator Bernie Moreno introduced the Halting International Relocation of Employment (HIRE) Act in the US Senate. The bill aims to impose a 25% tax on payments made to foreign entities for services rendered to US individuals or companies, starting 31 December 2025.

The bill also aims to create a 'domestic workforce fund' from the money collected through this tax, wh...