Amendment to Taxation Act, Payment and Settlement Systems Act get President’s assent
President Droupadi Murmu has signed two new acts into law: the Taxation and Other Laws (Amendment) Act, 2026, and an amendment to the Payment and Settlement Systems Act, 2007. These changes aim to attract foreign investment and provide a legal framework for managing MDR charges on digital payments.
Why it matters
These legislative changes significantly alter India's tax landscape for foreign investors and redefine the regulatory environment for digital payment systems like UPI.
President Droupadi Murmu has given her assent to the Taxation and Other Laws (Amendment) Act, 2026, and another law to amend the Payment and Settlement Systems Act of 2007.
The bills were passed by Parliament on August 10.
The Taxation and Other Laws (Amendment) Act, 2026, and an Act to further amend the Payment and Settlement Systems Act, 2007, have received the assent of the President on the August 17, 2026, the Ministry of Law said in a gazette notification.
Through the taxation Act, the government seeks to attract more foreign capital, promote domestic electronics manufacturing and make it easier for foreign cloud companies to use Indian data centres by providing "process certainty".
Lok Sabha passes Taxation and other laws Amendment Bill 2026
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