REGULATORY · COMPETITIVE · INDIA
NSE directs members to remit excess STT
Change
NSE directed members, including brokers and sub-brokers, to disclose and remit any excess Securities Transaction Tax (STT) collected but not deposited with the government for FY24 and earlier years.
Why it matters
A circular dated March 10 instructs all exchange members to furnish details of excess STT collected and retained for FY24 and preceding years directly to NSE. The Joint Commissioner of Income Tax, Range 7 (1), wrote on March 5 advising the exchange to seek details from members who retained excess STT. Brokers and other members are to remit any excess STT collected along with interest calculated at 1% for every month of delay. Payments are to be made to NSE immediately, after which NSE will deposit the amounts into the government account. This communication continues an earlier circular dated March 19, 2025 addressing excess STT retained for FY23 and earlier years.
Implications
- • Calculate retained excess STT balances for FY24 and prior years.
- • Submit detailed disclosures of retained excess STT directly to NSE.
- • Remit excess STT amounts to NSE with interest charged at 1% per month for delays.
- • Route remitted funds through NSE for deposit into the government account.
Who is affected
- • Brokers and sub-brokers
- • Other exchange members and market intermediaries
- • Brokerage compliance and finance teams
- • Exchange operations and settlement teams
What to watch
- • Submission of details of excess STT for FY24 and preceding years to NSE
- • Immediate remittance of excess STT plus 1% monthly interest to NSE for deposit to the government
Source
Topics
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