Markets · Taxes · India FY 2026-27
STT Collection Jumps 52% to ₹54,078 Crore: How Much the Government Earns From Every Share Market Trade — and Who Really Pays
Securities transaction tax has already brought in almost as much in seven months as in all of last year, driven by the April 2026 hike on futures and options.
Every time you press “buy” or “sell” on your trading app, a small slice of the trade goes straight to the government. You probably never notice it. It is buried in the contract note between brokerage, exchange charges and GST. But added up across crores of trades, that slice has become one of the fastest-growing revenue lines in India’s tax system.
Data from the Income Tax Department show securities transaction tax (STT) collections of ₹54,077.90 crore between 1 April and 10 November 2026, up 51.56% from ₹35,681.88 crore a year earlier. That is nearly the ₹57,522 crore collected in the whole of FY26, with almost five months still to go. The surge did not happen by accident. And the people paying for it are not always the ones who can afford it.
A Tax Line That Is Outrunning Everything Else
To see how unusual 51.56% growth is, compare it with the rest of the direct tax system. Net direct tax collections rose 11.76% to ₹14.42 lakh crore by 10 November, according to the Income Tax Department. Net corporate tax grew 17.8% to ₹6.32 lakh crore, and non-corporate tax, mainly individuals, rose 5.3% to ₹7.56 lakh crore. STT grew roughly three times faster than corporate tax.
Year-on-year growth, 1 April to 10 November 2026, Income Tax Department data. Bars scaled to STT.
STT is still a small share of the total. By our calculation, ₹54,078 crore is about 3.75% of net direct taxes collected so far. But it matters at the margin. With refunds up 25.91% and individual income tax growing slowly after the 2025 cut that made income up to ₹12 lakh tax-free, a fast-rising revenue line is welcome for a government targeting ₹26.97 lakh crore in direct taxes this year.
- ₹14.42 lakh crNet direct tax collected to 10 November 2026
- ₹3.08 lakh crRefunds issued in the same period
- ₹26.97 lakh crFY27 direct tax target, Union Budget
- ₹73,700 crFY27 STT estimate, below FY26’s ₹78,000 cr estimate
- ₹27,695 crSTT from F&O alone in FY26
- ₹10,000 crExtra STT experts estimated from the 2026 hike
From ₹11,528 Crore to ₹54,078 Crore in Seven Years
STT was introduced in 2004 as a simple, low-rate tax collected by stock exchanges on each trade. For years it was a minor revenue item. That changed with the pandemic-era surge in retail investing and, especially, the boom in options trading.
₹ crore. FY19 and FY21 from Budget documents via Business Standard; FY24 to FY26 from CBDT data; FY27 is collections to 10 November against the full-year Budget estimate. Bars scaled to the FY27 estimate.
Notice the flattening between FY24 and FY26. Collections grew only 2.1% in FY25 and 7.9% in FY26, even after an STT increase in October 2024. That is because SEBI’s curbs on F&O trading from late 2024, including fewer weekly expiries and larger contract sizes, cut trading volumes. FY26’s actual ₹57,522 crore fell well short of the ₹78,000 crore originally budgeted. The government’s response in Budget 2026-27 was to raise the rate again.
Why tax trades instead of profits?
STT was born as a trade-off. When it was introduced in the 2004 Budget, long-term capital gains on listed shares were made tax-free, and STT was meant to collect revenue in a simple, hard-to-evade way at the exchange. Collecting tax on each trade avoided the difficulty of tracking gains across millions of investors. That bargain has since eroded. Long-term capital gains tax on listed equity returned in 2018 and now stands at 12.5%, yet STT stayed. Today, an equity investor can pay both: STT when buying and selling, and capital gains tax on the profit. Critics call this double taxation; the government’s view is that STT is a transaction levy, not an income tax.
The April Rate Hike That Changed the Maths
On 1 February 2026, Finance Minister Nirmala Sitharaman announced: “I propose to raise the STT on futures to 0.05% from the existing 0.02%. The STT on options premium and on the exercise of options is proposed to be increased to 0.15% from the current rates of 0.10% and 0.125%, respectively.” The new rates took effect on 1 April 2026. Rates on ordinary share delivery, intraday equity and mutual funds did not change.
STT rate as a percentage of the value taxed (futures contract value; options premium on sale). From Budget announcements and broker summaries. Bars scaled to the highest rate.
Since Budget 2023, STT on futures has gone up four times, from 0.0125% to 0.05%, while STT on options premium has more than doubled. ICICI Direct described the aim as discouraging short-term, high-frequency trading in F&O. The revenue effect is plain in the numbers: experts quoted by Business Standard estimated the 2026 hike could add about ₹10,000 crore if volumes held up.
Every STT rate on one screen
| Transaction | STT rate | Who pays | Changed on 1 April 2026? | STT on ₹1 lakh |
|---|---|---|---|---|
| Equity delivery, buy | 0.1% | Buyer | No | ₹100 |
| Equity delivery, sell | 0.1% | Seller | No | ₹100 |
| Intraday equity, sell | 0.025% | Seller | No | ₹25 |
| Futures, sell | 0.05% (was 0.02%) | Seller | Yes, up 150% | ₹50 (was ₹20) |
| Options premium, sell | 0.15% (was 0.10%) | Seller | Yes, up 50% | ₹150 (was ₹100) |
| Options exercised | 0.15% (was 0.125%) | Buyer | Yes, up 20% | ₹150 (was ₹125) |
| Equity mutual fund redemption | 0.001% | Seller | No | ₹1 |
Key feature: STT is collected by the exchange at the moment of the trade, whether you make money or not. Unlike income tax, it does not wait to see your profit. A trader who loses money still pays STT on every transaction.
The Uncomfortable Contrast: The Government Wins, Most Traders Lose
This is where the STT story gets uncomfortable. SEBI’s study of individual traders in equity derivatives, published in August 2026, found that 87.7% of individual F&O traders lost money in FY26. Their combined net loss was ₹91,685 crore, down from ₹1,11,788 crore in FY25, but the average loss per trader rose to about ₹1.17 lakh. Options accounted for about 92% of the losses.
In the same year, the government collected ₹27,695 crore in STT from the F&O segment, ₹19,802 crore from options and ₹7,893 crore from futures, according to figures given to Parliament. By our calculation, that is about 48% of all STT collected in FY26.
₹ crore. Trader losses and transaction costs from SEBI’s August 2026 study; F&O STT from data presented to Parliament. Bars scaled to traders’ net losses.
SEBI’s figures also show how costs tip people into loss. Before transaction costs, 82.1% of individual traders had trading losses. After costs, including STT, brokerage and exchange charges, the share rose to 87.7%. In other words, roughly one in 18 traders who were at or near break-even before costs ended up in the red because of them.
What people get wrong: STT is not “the government’s share of your profits”. It is a tax on activity. Two traders can pay identical STT, one finishing the year up ₹2 lakh and the other down ₹2 lakh. The more often you trade, the more you pay, regardless of outcome.
What STT Actually Costs You: Worked Examples
Our illustrative calculations, using the rates in the table above. An investor buys shares worth ₹1 lakh for delivery and later sells them for ₹1.1 lakh. STT is ₹100 on the purchase and ₹110 on the sale, a total of ₹210, or about 2% of the ₹10,000 gain. Small for a long-term holder.
Now a futures trader. Each time they sell futures worth ₹20 lakh, STT is ₹1,000 at the new 0.05% rate, against ₹400 before April. Twenty such trades a month means ₹20,000 a month in STT, or ₹2.4 lakh a year, compared with ₹96,000 under the old rate. That is more than double SEBI’s average annual loss per individual trader of ₹1.17 lakh, paid before a single rupee of profit is earned.
An options seller collecting ₹50,000 in premium per trade pays ₹75 in STT at 0.15%, against ₹50 earlier. The amounts look tiny per trade but compound quickly for anyone trading every expiry.
Will the Government Beat Its Own Estimate?
At the current pace, very likely. The budget estimate of ₹73,700 crore for FY27 was lower than FY26’s original ₹78,000 crore, suggesting the government built in a fall in trading volumes after the hike. Instead, collections are up more than half. By our simple calculation, ₹54,078 crore over the 224 days to 10 November works out to roughly ₹88,000 crore over a full year if the same daily pace continues. That is a projection, not an official figure, and it assumes markets stay as active as they have been.
- STT introduced on trades on recognised stock exchanges.
- F&O STT raised to 0.0125% on futures and 0.0625% on options.
- SEBI study: 93% of F&O traders lost money over FY22 to FY24.
- STT raised to 0.02% on futures and 0.10% on options.
- Budget 2026-27 announces hike to 0.05% and 0.15%.
- New F&O STT rates take effect.
- SEBI study: 87.7% of traders lost ₹91,685 crore in FY26.
- STT collections reach ₹46,840 crore, up about 52%.
- STT reaches ₹54,078 crore, up 51.56%.
What We Know
- STT collections were ₹54,077.90 crore from 1 April to 10 November 2026, up 51.56%.
- FY26 STT was ₹57,522 crore and FY27’s estimate is ₹73,700 crore.
- STT on futures rose to 0.05% and on options premium to 0.15% from 1 April 2026.
- F&O contributed ₹27,695 crore of STT in FY26.
- 87.7% of individual F&O traders made net losses in FY26.
What Is Still Unclear
- How much of FY27’s growth comes from higher rates versus higher volumes; the split is not published.
- The F&O versus cash-market break-up of FY27 STT so far.
- Whether the government will revise its ₹73,700 crore estimate in the next Budget.
- How trading volumes will respond if markets turn weaker.
Smart Moves for Investors and Traders
STT is unavoidable on exchange trades, but how much it costs you is largely in your control.
- Check the STT line on every contract note and add it up monthly; most traders underestimate it.
- If you trade F&O, recalculate your break-even after the April 2026 rates, especially for futures, where STT rose 150%.
- Cut unnecessary churn. Fewer, better-planned trades reduce STT and other costs together.
- If you report F&O as business income, keep records of STT paid; ask a tax professional whether it can be claimed as a business expense in your case.
- For long-term investors, STT on delivery trades is a minor cost; focus on holding period and capital gains tax instead.
- Read SEBI’s risk disclosures before trading derivatives; the regulator’s own data show most individuals lose money.
Rule of thumb: if your annual STT bill is larger than your annual trading profit, the government is the only consistent winner in your trading.
Frequently Asked Questions
How much STT has the government collected in FY27?
According to Income Tax Department data, STT collections were ₹54,077.90 crore between 1 April and 10 November 2026, up 51.56% from ₹35,681.88 crore in the same period a year earlier.
What is the STT on futures and options from April 2026?
From 1 April 2026, STT on the sale of futures is 0.05% of contract value, up from 0.02%. STT on options premium on sale is 0.15%, up from 0.10%, and on exercised options it is 0.15%, up from 0.125%.
What is the STT on delivery and intraday trades?
Equity delivery trades attract 0.1% STT on both purchase and sale. Intraday equity trades attract 0.025% on the sell side. These rates did not change in Budget 2026-27.
Do I pay STT if I make a loss?
Yes. STT is charged on the value of each transaction at the time of the trade, regardless of whether the trade ends in profit or loss.
How much STT did the government collect in FY26?
CBDT provisional data show STT collections of ₹57,522 crore in FY26, up 7.9% from ₹53,296 crore in FY25. Of this, ₹27,695 crore came from the F&O segment.
Why did the government increase STT on F&O?
The hike aims to discourage short-term, high-frequency derivatives trading, where SEBI data show most individuals lose money, while also raising revenue. Experts estimated it could add about ₹10,000 crore a year if volumes held.
Who collects STT and when?
STT is collected by the stock exchange through your broker at the time of each taxable transaction and passed on to the government. It appears as a separate line on your contract note.
How many F&O traders lost money in FY26?
SEBI’s August 2026 study found 87.7% of individual equity derivatives traders made net losses in FY26, with aggregate losses of ₹91,685 crore and an average loss of about ₹1.17 lakh per trader.
The Short Version
Securities transaction tax has become a fast-growing source of revenue. Collections hit ₹54,078 crore by 10 November 2026, up 51.56%, after STT on futures more than doubled and on options rose by half from April. The government may comfortably beat its ₹73,700 crore estimate. But STT is a tax on activity, not profit. In FY26 the government collected ₹27,695 crore from F&O while individual traders lost ₹91,685 crore. For long-term investors it is a minor cost. For frequent traders, it can be the difference between profit and loss.
