New Delhi, Sep 18: Government revenue from Securities Transaction Tax (STT) has registered a sharp increase in the first half of financial year 2026-27, with collections reaching Rs 40,214 crore by September 17.
The latest figures represent a 52.9 per cent rise from the Rs 26,306 crore collected during the corresponding period of the previous financial year. The increase comes as India’s capital markets continue to generate significant transaction volumes, while higher STT rates on certain derivatives transactions have also contributed to the rise.
From April 1, the STT on the sale of futures contracts was increased to 0.05 per cent from 0.02 per cent. The rate applicable to the sale of options was also raised to 0.15 per cent from 0.10 per cent. These changes have played a role in lifting the tax collected from securities transactions during the current fiscal year.
The strong STT performance forms part of a broader increase in direct tax receipts. Net direct tax collections rose 12.96 per cent year-on-year to Rs 12.12 lakh crore between April 1 and September 17. Gross direct tax collections stood at Rs 14.32 lakh crore, while refunds during the period increased to around Rs 2.20 lakh crore.
Corporate tax collections also remained an important contributor, with net corporate tax receipts rising to around Rs 5.56 lakh crore. Non-corporate tax collections stood at about Rs 6.16 lakh crore during the period. Advance tax collections increased 16.18 per cent to around Rs 5.22 lakh crore, indicating higher tax payments during the first half of the financial year.
For the full financial year, the government has budgeted STT collections of Rs 73,700 crore. The Budget has also estimated total direct tax collections at Rs 26.97 lakh crore for FY27.
STT is collected on specified transactions in securities traded on recognised stock exchanges. Its revenue performance therefore provides a direct link between activity in the organised capital markets and government receipts.
The latest numbers also underline the growing importance of India’s financial markets as a source of economic activity and public revenue. At the same time, the increase in transaction-based tax collections reflects both market activity and changes in the applicable tax rates, making it important to view the growth in the broader context of India’s evolving equity and derivatives ecosystem.