Quick Summary
The Securities Transaction Tax (STT) collections have witnessed an unprecedented rise, soaring by over 75% to ₹44,538 crore as of January 12, 2025, compared to ₹25,415 crore during the same period in 2024. This remarkable growth comes despite the recent hike in STT rates for futures and options (FO) transactions, implemented in October 2024 to curb speculative activity in the segment. Budget Proposals Lead to Higher STT Rates Union Finance Minister Nirmala Sitharaman, in the 2024-25 Budget p
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FAQ :
STT collections have increased by over 75%, reaching ₹44,538 crore as of January 12, 2025, compared to ₹25,415 crore in the same period of the previous year.
The STT rates for futures and options (F&O) transactions were doubled in October 2024, as proposed in the 2024-25 Budget, with the aim of curbing speculative activity.
STT collections have continued to climb despite significant stock market swings, with revenue rising during both bullish and bearish market phases.
Premium turnover in the F&O segment on the NSE has declined substantially, dropping from ₹54.38 lakh crore in September 2024 to ₹17.47 lakh crore in January 2025, following restrictions on speculative trading.
Yes, the surge in STT collections has significantly boosted government revenue, surpassing the Budget estimate of ₹37,000 crore for 2024-25.
Yes, the Association of Mutual Funds in India (AMFI) has requested the government to roll back the STT hike for arbitrage and equity savings funds due to increased costs for these hedging instruments.
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