Parliament on Monday passed the Taxation and Other Laws Amendment Bill, 2026, on Monday with the Rajya Sabha returning it to the Lok Sabha after discussion.The Bill seeks to repeal and replace the Income-tax (Amendment) Ordinance, 2026, issued on June 5, 2026. It exempts foreign institutional investors and the Bank for International Settlements (BIS) from paying income tax on interest earned on investments in government securities, and capital gains arising from sale, exchange or transfer of such securities.Finance Minister Nirmala Sitharaman said the amendments to the Taxation and Other Laws (Amendment) Bill provide only enabling provisions and do not impose any tax or transaction charges for UPI users.“It enables the government to specify, through notification, the electronic payment modes that will continue to receive statutory protection against charges. The UPI and Services Steering Committee, headed by the National Payments Corporation of India (NPCI) , will consider any merchant discount rate (MDR) to be introduced in India, and if so, its scope,” she said, adding that no MDR provision had been finalised.She said that the objective of the Bill was to strengthen India’s manufacturing ecosystem, attract further investment, generate employment and promote manufacturing activities.She said the second major reform related to providing tax exemptions to foreign companies procuring data services from specified data centres in India.The minister informed Parliament that these reforms would significantly benefit Indian companies as existing data centres would expand their operations.The Rajya Sabha also passed the Bankers’ Books Evidence Bill, 2026, by a voice vote after Opposition members walked out before a detailed discussion could take place. The legislation seeks to replace the 135-year-old Bankers’ Books Evidence Act of 1891 and align the legal framework governing financial evidence with contemporary digital banking practices.