New Delhi, August 6: Key amendments to India’s tax and payment infrastructure laws received parliamentary approval in the Lok Sabha on Thursday, establishing new regulatory powers for electronic transactions and international investment funds.
The Taxation and Other Laws (Amendment) Bill, 2026 replaces existing legal barriers that prevented banks and payment service providers from imposing transaction fees on notified digital payment platforms like UPI.
“The policy framework provides greater flexibility to balance digital infrastructure operational costs with merchant and consumer interests,” asserted government representatives following the voice vote passage.
The legislation substantially relaxes eligibility criteria for eligible offshore investment funds managed from India, removing previous investor thresholds and corpus caps to encourage global fund managers to relocate operations domestically. Additionally, foreign institutional investors and global financial bodies will receive extended tax relief on interest income and capital gains from government securities as the Bill advances to the Rajya Sabha.
