STT Collections Jump 52.9 Per Cent To ₹40,214 Crore In First 6 Months Of FY27

New Delhi, September 18: Securities Transaction Tax (STT) collections rose sharply by 52.9 per cent in the first six months of the ongoing financial year, reflecting higher collections from transactions in the securities market and increased tax rates on derivatives.

According to data, the government collected Rs 40,214 crore in STT between April 1 and September 17, compared with Rs 26,306 crore during the corresponding period last year.

Higher STT Rates On Derivatives

The increase in collections comes after the government raised STT rates on certain derivative transactions from April 1 as part of the FY27 Budget. The STT on the sale of futures contracts was increased to 0.05 per cent from 0.02 per cent.

STT is levied on specified sell transactions involving securities, including futures and options. For futures, the tax is calculated on the actual traded value, while for options, it is generally calculated on the premium. In the case of the final exercise of an option contract, STT is charged on the settlement price on the day of exercise if the contract is in the money.

The STT on the sale of options in securities was also increased to 0.15 per cent from 0.10 per cent with effect from April 1.

STT On Mutual Funds

For mutual funds, STT is applicable to the sale of units of equity-oriented mutual funds on a recognised stock exchange and the repurchase of such units by the mutual fund.

The government has set a target of collecting Rs 73,700 crore through STT in FY27. Its overall tax collection target for the financial year stands at Rs 44.04 lakh crore, representing a 9.4 per cent increase over the previous year.

Of the total tax collection target, direct taxes are estimated at Rs 26.97 lakh crore, 18.1 per cent higher than the FY26 level.

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Direct Tax Collections Rise

Meanwhile, the government's net direct tax collections increased 13 per cent year-on-year to Rs 12.124 lakh crore between April 1 and September 17, according to data released by the Finance Ministry on Friday. The growth was supported by a nearly 20 per cent increase in corporate tax collections.

The net direct tax collections so far represent around 45 per cent of the Rs 26.97 lakh crore direct tax target set for FY27.

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