Market Activity Drives 45% Surge In India’s STT In FY27 So Far; Direct Tax Mop-Up Rises 14.6%

Central government’s Securities Transaction Tax collection between April 1 and June 17 surged sharply by 44.9% year-on-year to Rs 18,856 crore compared with Rs 13,013 crore. 

The surge comes as India recorded an industry-wide daily premium turnover of Rs 96,916 crore in May, marginally lower than the Rs 97,637 crore seen in April. ADFTO in the futures segment stood at Rs 1.58 lakh crore last month. 

Net direct tax collections, after adjusting for refunds rose 14.64% to Rs 5.21 lakh crore from Rs 4.54 lakh crore a year ago; while overall overall gross direct tax collections stood grewy 12.26% to Rs 6.10 lakh crore from Rs 5.42 lakh crore collected in the corresponding period of FY26.

Under the direct tax collections, corporate tax collections increased to Rs 2.76 lakh crore from Rs 2.48 lakh during the same period last year, while non-corporate tax collections climbed to Rs 3.15 lakh crore from Rs 2.81 lakh crore during the same period.

Advance tax collection was up 15.3% year-on-year to Rs 1.79 lakh crore as on June 17 from Rs 1.55 lakh crore in FY26. Corporate advance tax collections grew 16.01% to Rs 1.41 lakh crore, while non-corporate advance tax payments increased 12.73% to Rs 37,620 crore.

“Overall it appears that tax collections have shrugged off the degrowth caused by the previous years rate cut and once again resumed the growth path. The data also shows strong advance tax growth from companies indicating the corporate sector is doing well. While these are early indicators of the trends sustains it would help keep the Government on its track of maintaining the fiscal deficit target,” said Rohinton Sidhwa, Partner at Deloitte India.  

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STT Hike

STT on futures was increased from 0.02% to 0.05% during Union Budget 2026, while the tax on option premiums was raised from 0.1% to 0.15%. Moreover, STT on the exercise of options was hiked to 0.15%.

FY26 Direct Tax Collections

India’s direct tax collections for fiscal 2026 recorded a moderate year-on-year increase but missed the government’s revised estimates, highlighting a mixed fiscal performance amid evolving economic conditions.

Although, STT tax collection were a standout and witnessed a sharp jump during fiscal 2026. The rise reflected robust activity in equity markets, including higher trading volumes and sustained retail participation through the year.

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