The amendment sparked controversy after Congress alleged it removes the statutory guarantee of zero-fee UPI transactions and could enable the introduction of Merchant Discount Rate (MDR). IntroductionThe Lok Sabha has passed the Taxation and Other Laws (Amendment) Bill, 2026, which proposes several amendments to tax and allied laws. Under the existing law, Section 10A referred specifically to electronic payment modes prescribed under Section 269SU of the Income-tax Act, 1961. MDR Does Not Apply to CustomersThe Finance Minister clarified that Merchant Discount Rate (MDR) applies only to merchants and not to end users or customers. ConclusionThe controversy surrounding the Taxation and Other Laws (Amendment) Bill, 2026 illustrates the distinction between an enabling legislative amendment and a substantive policy decision.