Securities Transaction Tax Collections Rise 53% to ₹40,214 Crore in 2026-27

Collections from the Securities Transaction Tax (STT) have climbed sharply in the current financial year. The government collected ₹40,214.36 crore by September 17, compared with ₹26,305.72 crore during the same period a year earlier. 

The rise comes after higher STT rates were introduced from April 1. The increase was mainly on futures and options transactions, where trading activity continues to generate a substantial share of STT revenue. 

Derivatives Tax Rates Were Raised 

STT on futures was increased to 0.05% of traded value from 0.02%. For options, the rate on premium turnover moved up to 0.15% from 0.10%, while the levy on exercised options increased to 0.15% of intrinsic value from 0.125%. 

This was the second STT increase by the government since 2024. For 2026-27, the Union Budget has estimated STT collections of ₹73,700 crore. 

Collections Have Already Crossed ₹40,000 Crore 

The latest figure is also higher than the ₹57,522 crore collected during the whole of FY26. In FY25, STT collections stood at ₹53,296 crore. 

Deven Choksey, Managing Director at DRChoksey FinServ, attributed the increase mainly to the higher tax rates on derivative transactions. He said the revised rates allow the government to collect more revenue from each contract traded. 

Trading Volumes Face Regulatory Pressure 

Choksey also pointed to recent SEBI measures, including larger contract sizes and tighter position limits. According to him, these steps were aimed at reducing retail speculation, while overall market transaction values have remained high. 

At the same time, derivatives activity has faced pressure over the past month following measures such as the closing auction session and the requirement for 100% collateral. 

Read More: NPS Vatsalya Marks Two Years With 4.9 Lakh Enrolments and ₹403 Crore AUM! 

Conclusion 

STT collections have gained significantly in 2026-27, helped by the higher rates introduced in April. However, the recent pressure on derivatives volumes shows that regulatory changes are also affecting trading activity, making the balance between transaction levels and tax collections important for the rest of the year. 

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