Finance Minister Nirmala Sitharaman has introduced the Taxation and Other Laws (Amendment) Bill, 2026 in the Lok Sabha, opening debate on a set of proposed changes that touch both digital payments and tax rules. The bill was tabled in the lower house on Tuesday and is aimed at updating multiple legal provisions through one amendment measure.
One of the most closely watched parts of the proposal is its treatment of UPI transactions. According to the bill’s description, it includes a move to bring back merchant discount rates on UPI payments, a change that could have implications for merchants, payment service providers and the wider digital payments ecosystem.
The legislation also covers income-tax related measures, suggesting a broader effort to adjust how existing tax and payment system laws operate. While the full impact will depend on the final text and the parliamentary process ahead, the bill signals that the government is looking at both revenue-related provisions and the rules governing fast-growing electronic payment channels.
For now, the bill’s introduction marks the first formal step in Parliament. Its provisions, especially those linked to UPI charges and tax administration, are likely to draw attention from businesses, fintech players and taxpayers as the proposal moves forward for further discussion and scrutiny.
