Brokers told to disclose, remit excess STT retained

Brokers have been directed to furnish details of such excess STT collected and retained as of March 31, 2023 directly to the exchange.

The National Stock Exchange of India Ltd (NSE) has asked brokers and sub-brokers to disclose and remit any excess Securities Transaction Tax (STT) collected from investors but not deposited with the government for FY24 and earlier years, following directions from the Income Tax Department.

In a circular issued on Tuesday, the exchange said the move follows a communication from the Joint Commissioner of Income Tax, Range 7(1), which flagged that some market intermediaries had collected STT in excess of the applicable amount and retained it instead of remitting it to the government account.

STT compliance

Brokers have been directed to furnish details of such excess STT collected and retained as of March 31, 2023 directly to the exchange. They have been given seven days from the date of the circular to comply and must submit the information with the caption “Excess STT Retained – NSE”.

The circular said the Income Tax Department has communicated on March 5, asking the exchange to issue a notice requesting all brokers and sub-brokers to disclose details of excess STT collected for FY24 and preceding years.

Members have also been instructed to remit the excess STT along with interest at 1 per cent for every month of delay to the exchange immediately, under intimation to the tax department. NSE will subsequently deposit the recovered amount into the government account.

This directive is a follow-up to an earlier circular issued by the exchange on March 19, 2025, which had sought similar disclosures from brokers for FY23 and prior years.

The exchange has also named designated officials who can address queries from members regarding the process of disclosure and remittance.

STT collections surge

Introduced in 2004, STT is a key source of tax revenue from securities market transactions, levied on the purchase and sale of equities and certain derivatives.

Collections have risen sharply in recent years alongside a surge in trading activity. STT collections increased from ₹23,191 crore in FY22 to ₹25,085 crore in FY23 and further to ₹33,778 crore in FY24.

The growth accelerated in FY25, with collections jumping to ₹52,197 crore. For FY26, the government has estimated STT collections at ₹63,670 crore in the revised estimates, reflecting continued growth in market activity.

Published on March 10, 2026