India's Rajya Sabha returned The Taxation and Other Laws (Amendment) Bill, 2026 on Monday during the Monsoon Session [1].
The legislative move comes amid intense scrutiny of digital payment frameworks and tax law revisions that affect millions of small-scale entrepreneurs.
The event occurred on day 16 [1] of the parliamentary session in New Delhi. While reports on the bill's final status varied between legislative bodies [1], [2], Finance Minister Nirmala Sitharaman provided clarity on the government's position regarding digital payments.
Sitharaman said that consumers do not need to pay any UPI charges [1]. She said that there will be no Merchant Discount Rate (MDR) for small merchants [1]. This ensures that the Unified Payments Interface remains a zero-cost tool for the general public, and small-scale vendors [1], [3].
Outside the taxation debate, the parliamentary atmosphere remained tense. The Opposition said it would continue protests and increase pressure on the government this Thursday [4]. Their demands include a formal discussion on an alleged embezzlement case involving Ram Mandir donations, and the police response to student protests that took place in July at Jantar Mantar [4].
The return of the bill by the upper house suggests a period of further deliberation or amendment before the legislation can proceed. The government's commitment to keeping UPI free is intended to maintain the momentum of digital financial inclusion across the country.
“Consumers do not need to pay any UPI charges, no MDR for small merchants.”
The decision to maintain zero charges for UPI transactions prevents a potential shift in consumer behavior toward cash, protecting India's digital payment ecosystem. However, the return of the Taxation and Other Laws (Amendment) Bill indicates a legislative deadlock or a need for refinement in the government's fiscal strategy, potentially delaying planned tax reforms.
