Securities Transaction Tax collection surged 52 percent between April 1 and October 14 of FY27, the Income Tax Department said on Thursday. Amid high market volatility, net direct tax collection also grew 13 percent. Corporate tax contributions rose by 20 percent, while non-corporate tax collections showed a 6 percent increase overall.
With extreme volatility in the stock market, collections of Securities Transaction Tax (STT) surged around 52 per cent during April 1 and October 14 of the current fiscal year (2026-27 or FY27), the Income Tax Department reported on Thursday. Meanwhile, overall net direct tax collection rose by over 13 per cent during the period under consideration.
Data from the Income tax Department showed that collection from STT surged to ₹46,840 crore as against around ₹31,000 crore. Corporate tax contributed around ₹6 lakh crore as compared to over ₹4.96 lakh crore, showing a growth of over 20 per cent. Mop up through non-corporate tax was over ₹6.53 lakh crore, around 6 per cent higher than over ₹6.91 lakh crore collected during April-October period of last fiscal.
STT is one of the direct taxes, along with corporate tax and non-corporate taxes (taxes paid by individuals, HUFs, Firms, AoPs, BoIs, Local Authorities, Artificial Juridical Person). It is levied on the purchase and sale of securities listed on recognized stock exchanges in India. This tax is charged at the time of executing a transaction and is applicable to all equity and derivative transactions, including stocks, equity futures, and options. The concept of STT was introduced to curb tax evasion, enhance transparency in trading, and simplify the taxation process for investors.