Latest News | Govt Pegs STT Collection at Rs 20,000-cr for FY23

New Delhi, Feb 1 (PTI) The government expects to collect Rs 20,000 crore from securities transaction tax (STT) in 2022-23, which is 60 per cent higher than the budget estimate of the preceding fiscal year.

The Budget Estimate for 2021-22 projected collection of Rs 12,500 crore.

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For financial year 2021-22, the revised estimate for STT collection stood at Rs 20,000 crore.

The sharp increase in budget estimate for the next fiscal could be on account of government's confidence in the securities market.

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With participation of new investors continuing to be impressive in both cash and derivative segments of stock exchanges, STT collections are expected to be higher, experts believe.

The actual collections from STT was at Rs 16,927 crore in 2020-21, the budget documents showed on Tuesday.

The government introduced STT in 2004, on transactions in different types of securities. All stock market transactions that involve equity or equity derivatives like futures and options are liable to be taxed under STT.

The rate presently varies from 0.025 per cent to 0.25 per cent depending upon the type of security traded and transaction -- whether sale or purchase.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)