Parliament Passes Taxation Bill; UPI Transactions Remain Free

Parliament passed the Taxation and Other Laws (Amendment) Bill, 2026, on Monday, with Finance Minister Nirmala Sitharaman confirming that UPI transactions will remain free for consumers.

The legislation amends the Payment and Settlement Systems Act, 2007, to provide the government legal flexibility to regulate electronic payment charges, though no Merchant Discount Rate has been finalized.

The Bill also includes measures to attract foreign investment and provides tax exemptions for foreign portfolio investors, replacing an ordinance issued on June 5.