Amendment to Taxation Act, Payment and Settlement Systems Act get President’s assent

President Droupadi Murmu has given her assent to the Taxation and Different Legal guidelines (Modification) Act, 2026, and one other legislation to amend the Fee and Settlement Methods Act of 2007.

The payments have been handed by Parliament on August 10.

Additionally Learn: UPI and the cost of policy reversal 

The Taxation and Different Legal guidelines (Modification) Act, 2026, and an Act to additional amend the Fee and Settlement Methods Act, 2007, have acquired the assent of the President on the August 17, 2026, the Ministry of Regulation stated in a gazette notification.

By means of the taxation Act, the federal government seeks to draw extra international capital, promote home electronics manufacturing and make it simpler for international cloud corporations to make use of Indian knowledge centres by offering “course of certainty”.

Lok Sabha passes Taxation and other laws Amendment Bill 2026

The modification to the Fee and Settlement Methods Act, 2007, provides a authorized backing to the federal government to switch the zero-MDR framework on UPI and RuPay card transactions. The federal government can now resolve, through notification, which digital cost modes or transactions would stay free from MDR expenses.

LISTEN: MDR charges on UPI transactions: Necessity or revenue grab? | In Focus Podcast

At current, banks and payment-system suppliers can’t cost customers for cost made by way of UPI and RuPay debit playing cards.

The UPI and Companies Steering Committee headed by NPCI, will now resolve on the MDR expenses.

Whereas replying to the dialogue of the Invoice, Finance Minister Nirmala Sitharaman had stated UPI funds will stay free for shoppers, and any future service provider low cost charge (MDR) will apply solely to sure classes of service provider transactions.

The Taxation and Different Legal guidelines (Modification) Invoice, 2026, replaces the June 5 ordinance that supplied I-T exemption to curiosity earnings and capital features made by FPIs from investments in G-Secs.

The Act makes it simpler for fund managers to relocate to India by reducing down on the record of circumstances that these funds must fulfill to make sure that their international earnings doesn’t get taxed in India.

To encourage home manufacturing by giving coverage certainty, the Act extends until 2040-41 the earnings tax exemption presently out there to international corporations that have interaction a contract producer in India for producing electronics items right here.

Specified digital objects talked about within the Act embrace cellphones, laptops, private computer systems, tablets, servers and their key elements and equipment.

To assist part provide for electronics factories, it proposes I-T exemption for 15 years until 2040-41 to international corporations that retailer elements in customs warehouses to additional provide them to a contract producer in India.