The National Stock Exchange (NSE) has instructed its trading members to provide details of excess Securities Transaction Tax (STT) collected but not remitted to the government for FY 2023–24 and preceding years. The directive follows guidance from the Income Tax Department, urging brokers and sub-brokers to disclose cases where excess STT was collected from clients but not transferred to the government. Members are required to submit these details under the category “Excess STT Retained-NSE” and adhere to the circular within seven days of its issuance.
The circular also mandates that the excess STT, along with 1 percent interest for each month of delay, be remitted to the National Stock Exchange of India Ltd for subsequent deposit into the government account. NSE highlighted that this communication aligns with a previous notice from March 19, 2025, addressing excess STT retention by members for FY 2022–23 and prior periods. Members are further urged to promptly remit the outstanding amounts along with applicable interest for FY 2023–24 and earlier years as of March 31, 2023.
In the Union Budget 2026, Finance Minister Nirmala Sitharaman announced an increase in the Securities Transaction Tax (STT) on futures and options. The STT on futures has been raised from 0.02 percent to 0.05 percent, while the STT on options premium and exercise of options has been adjusted to 0.15 percent from the existing rates of 0.1 percent and 0.125 percent, respectively, effective April 1, 2026.
