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NSE Directs Brokers to Report and Remit Excess Securities Transaction Tax

The National Stock Exchange has instructed its trading members to furnish details of excess Securities Transaction Tax collected from clients but not remitted to the government. This directive follows instructions from the Joint Commissioner of Income Tax, who advised the exchange to address the issue. Brokers must submit the required information within seven days and remit the excess amount along with interest at 1% per month for the delay. The circular also references recent budget changes where Finance Minister Nirmala Sitharaman announced revised, higher STT rates effective April 2026.

Key Points: NSE Orders Brokers to Report Excess STT to Income Tax Dept

  • NSE directs brokers to report excess STT
  • Follows Income Tax Department instructions
  • Must remit tax with 1% monthly interest
  • Disclosure required for FY 2023-24 and prior years
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NSE directs brokers to report, remit excess STT collected

NSE directs brokers to disclose & remit excess STT collected from clients, following Income Tax Department orders. Details for FY 2023-24 and prior years.

NSE directs brokers to report, remit excess STT collected
"draw attention to cases where some members collected excess STT from clients but did not deposit the amount - NSE Circular"

Mumbai, March 10

The National Stock Exchange on Tuesday directed its trading members -- brokers and sub-brokers -- to furnish details of excess Securities Transaction Tax collected but not remitted to the government for FY 2023-24 and preceding years, following instructions from the Income Tax Department.

In a circular issued by the exchange's finance and accounts department, NSE said the Joint Commissioner of Income Tax, Range 7(1), had advised the exchange to draw attention to cases where some members collected excess STT from clients but did not deposit the amount with the government.

According to the notification, the tax authority requested the NSE to issue a circular asking members to disclose details of such excess STT retained and remit the amount to the exchange.

Members have been directed to submit the details under the caption "Excess STT Retained-NSE" and comply with the circular within seven days of its publication.

They must also remit the excess STT collected along with interest at 1 percent for every month of delay to the National Stock Exchange of India Ltd, which will subsequently deposit the amount in the government account.

The exchange also said that the circular follows its earlier communication dated March 19, 2025, regarding excess STT retained by members for FY 2022-23 and prior years.

Further NSE noted that the disclosures should include excess STT collected and retained for FY 2023-24 and preceding years as on March 31, 2023, and urged members to remit the dues immediately along with the applicable interest.

Earlier in the Union Budget 2026, Finance Minister Nirmala Sitharaman announced revised STT on futures by more than doubled from 0.02 per cent to 0.05 per cent.

Moreover, STT on options premium and exercise of options also rose to 0.15 per cent from the present rate of 0.1 per cent and 0.125 per cent, respectively, effective April 1, 2026.

- IANS

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Reader Comments

S
Sarah B
As someone who trades regularly, I've always wondered about the exact breakdown of charges. This kind of transparency is crucial for investor confidence. The 1% monthly interest is a strong deterrent.
R
Rohit P
Brokers already charge so much in fees. Now we find out some were pocketing extra tax? This is shameful. The government should name and shame these brokers.
A
Ananya R
While the action is good, it highlights a systemic issue. Why did it take so many years and a directive from the Income Tax department for the NSE to act? The oversight mechanism seems reactive, not proactive.
K
Karthik V
The STT rates are already going up significantly from next year. Now we hear about past excess collection. Small retail investors like us bear the brunt of all this. 😓
M
Michael C
This is a positive step for market integrity. Ensuring all dues are remitted to the government is fundamental. I hope other exchanges follow suit and audit their members.
P
Priya S
Will the investors who were charged this excess STT get a refund? The circular says remit to the government, but what about the clients who paid it? That money should come back to us.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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