Buoyant market leads to 128% jump in STT receipt so far this fiscal
₹16,634 crore, against ₹7,285 crore collected in the same time a year ago, according to the Central Board of Direct Taxes (CBDT). This follows strong volume growth in the markets, as valuations stage a rebound after the national polls. Data from the Bombay Stock Exchange showed there have been 4.6 million trades a day an average so far this financial year compared with 3.3 million trades last financial year.
The average daily turnover in the equity segment in the BSE so far this financial year has been ₹9,300 crore, compared with ₹6,622 crore last year. Overall, the equity market turnover at the BSE stands at ₹6.6 trillion this financial year in 71 trading days, compared with ₹16.3 trillion in FY24 in 246 trading days. The strong jump in STT collection adds to the overall direct tax collections which stood at ₹5.74 trillion in the 1 April to 11 July the period, after tax refunds, showing a 20% growth annually, according to CBDT data.
Experts said the buoyancy in STT collections is in line with the surge seen in market volume. “The Indian stock markets are currently at a record high. This surge naturally leads to increased trading volumes as investors actively participate in the market, leading to a corresponding rise in STT collections.
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