Parliament Passes Taxation And Other Laws (Amendment) Bill, 2026

Parliament has passed the Taxation and Other Laws (Amendment) Bill, 2026, after the Rajya Sabha returned the Money Bill to the Lok Sabha following discussion. The Lok Sabha had earlier passed the Bill, which was then sent to the Rajya Sabha for discussion. Since it is a Money Bill, the Rajya Sabha can only make recommendations on its provisions and return it to the Lok Sabha, which may accept or reject those recommendations.

Replying to the discussion on the Bill in the Rajya Sabha, Finance Minister Nirmala Sitharaman made it clear that the legislation does not impose any tax on UPI and that the digital payment system will remain free for consumers.

The Finance Minister stated that the UPI-related amendment is only an enabling provision and does not itself impose any tax or transaction charge on users. Ms Sitharaman also said that the government does not intend to impose any MDR charges on small merchants, as they remain central to UPI’s inclusive growth.