Govt's earnings surge: ₹25,000 cr from STT as stock market hits highs

In a year investors flooded into the stock market and the benchmark indices touched new highs, the government earned 25% more from the tax on selling listed securities, a top official said.

- Gireesh Chandra Prasad

The Income Tax Department collected ₹25,000 crore in securities transaction tax (STT) till end of January, compared to ₹20,000 crore collected in the same time a year ago, Central Board of Direct Taxes (CBDT) chairman Nitin Gupta said in an interview.

The increase is in line with the 26% growth seen in personal income tax collection in the April to 10 January period this fiscal, but way above the 8% growth in corporate tax collection.

The growth in STT collection reflects the robust growth in capital market trade quantity and turnover.