3 weeks ago
Lok Sabha Passes Taxation and Other Laws (Amendment) Bill, 2026
The government of India has made new rules about taxes.
Taxes are money that people and companies pay to the government to help run the country.
The new rules are called the Taxation and Other Laws (Amendment) Bill, 2026.
The Lok Sabha, which is part of India's parliament, voted to approve these rules.
A big change is that paying with UPI on your phone will still be free for you and your family.
If the government ever adds a small fee, shops and businesses would pay it — not customers.
People from other countries who buy Indian government bonds won't have to pay as much tax anymore.
Companies that make things like mobile phones and laptops in India will get tax benefits too.
The rules also help companies that build data centres and trade diamonds.
All of this is meant to bring more companies and investors to India from around the world.
The Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026, replacing the Income-tax (Amendment) Ordinance, 2026.
UPI payments remain free for customers, and any future merchant discount rate charges would apply only to merchants, per Finance Minister Nirmala Sitharaman.
FPIs and the Bank for International Settlements (BIS) get tax exemption on interest and capital gains from Indian government securities from April 1, 2026.
Eligibility conditions for foreign investment funds managed from India are relaxed, removing requirements like a minimum of 25 investors and a Rs 100 crore average corpus.
Tax exemptions for electronics manufacturing, data centres and diamond trading run until 2041, while REIT and InvIT dividend income gets relief.
- Who
- The Lok Sabha and Finance Minister Nirmala Sitharaman
- What
- Passed the Taxation and Other Laws (Amendment) Bill, 2026, introducing tax changes for UPI payments, foreign investors, REITs, InvITs, electronics manufacturing, data centres and diamond trading
- Where
- India
- When
- Bill passed in August 2026; the ordinance it replaces was issued in June 2026
- Why
- To make India a more attractive destination for foreign investors and global companies while supporting sectors such as electronics manufacturing, data centres and diamond trading
Key facts
- Bill
- Taxation and Other Laws (Amendment) Bill, 2026
- Replaces
- Income-tax (Amendment) Ordinance, 2026
- Passed by
- Lok Sabha
- Finance Minister
- Nirmala Sitharaman
- UPI charges
- Free for customers; any future MDR would apply to merchants
- FPI/BIS exemption effective
- April 1, 2026
- Electronics, data centre and diamond exemptions
- October 1, 2026 to March 31, 2041
- Acts amended
- Payment and Settlement Systems Act, 2007; Income-tax Act, 2025; Finance Act, 2026
Quotes
Finance Minister Nirmala Sitharaman
Indian Finance Minister
“any merchant discount rate (MDR) on UPI transactions, if introduced in the future, will be applicable to merchants and not customers.”
news18.com
Sources
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