New Delhi, Aug 4 (UNI) The Lok Sabha on Tuesday introduced the Taxation and Other Laws (Amendment) Bill, 2026, with the government describing it as a key step towards modernising India's tax framework and strengthening the country's digital financial ecosystem. The legislation was introduced amid noisy protests by Opposition members and cleared for introduction through a voice vote.

Finance Minister Nirmala Sitharaman moved the Bill for introduction, seeking the House's permission to bring in the Taxation and Other Laws (Amendment) Bill, 2026, which proposes amendments to the Payment and Settlement Systems Act, 2007, the Income-tax Act, 2025, and the Finance Act, 2026.

The Bill seeks to replace the Income-tax (Amendment) Ordinance, 2026, which was promulgated on June 5, 2026, while introducing a broader set of legislative changes aimed at boosting foreign investment, simplifying the regulatory framework for digital payment systems and extending policy support to key manufacturing sectors.

According to the proposed legislation, the amendments are intended to update the legal architecture governing taxation and payment systems in response to the evolving needs of India's economy and its rapidly expanding digital ecosystem.

The government has maintained that the reforms are designed to improve the ease of doing business, enhance investor confidence and ensure that India's tax and financial laws remain aligned with technological advancements and changing commercial practices.

The proposed changes are also expected to streamline regulatory processes and create a more investment-friendly policy environment while supporting the country's long-term economic growth objectives. UNI SKA AAB