Parliament Clears Taxation Bill; UPI Transactions to Remain Free

The Indian Parliament passed the new Taxation Bill on August 10, 2026, which clarifies the regulatory framework for digital payment platforms.

Finance Minister Nirmala Sitharaman confirmed in the Rajya Sabha that UPI transactions will remain free for end-users, dismissing concerns about potential service charges.

The bill aims to streamline tax compliance for financial institutions, though brokers and distributors may face increased costs due to new Merchant Discount Rate (MDR) adjustments.