The National Stock Exchange has directed stock brokers to report and return any excess STT (Securities Transaction Tax) collected by them which has not been remitted to the government for FY2023-24 and the financial years before that as well.
While the excess tax has to be returned immediately, the brokers will have to furnish the details of such tax within seven days.
The direction was given through a circular by the stock exchange on Tuesday. The exchange said that the notice was being issued after receiving directions from the Joint Commissioner of the Income Tax Department.
“The Joint Commissioner of Income Tax…has advised us to draw attention towards excess STT collected by some of the members, which has not been remitted to the Government account for FY 2023-24 and prior years,” the notice said.
STT is collected by brokers while selling and buying securities by investors. The stock exchange has asked brokers to immediately remit the excess tax collected by them directly to the NSE.
The excess tax must be remitted along with interest of 1 percent for every month of delay. The stock exchange will then deposit the total amount with the government.
The exchange said that brokers were required to submit details of the excess tax through a letter captioned ‘Excess STT Retained-NSE’ within seven days of the notice.
“They (brokers) may be directed to comply with this Circular within 7 days from publishing of the Circular/Notice and remit such excess STT collected along with interest @ 1% for every month’s delay immediately,” the notice said.
The stock exchange said that the latest notice was being issued in continuation of a similar circular dated March 19, 2025. That notice concerned excess tax collected but not returned to the government for FY2022-23 and prior years.
First implemented in 2004, STT collections by the Centre have increased steadily over the past years.
It has increased from about Rs 23,191 crore in FY22 to Rs 52,197 crore in FY25.
