NSE tells brokers to disclose and remit excess STT retained for FY24 and earlier years

The National Stock Exchange (NSE) has mandated its brokers and sub-brokers to disclose and remit any excess Securities Transaction Tax (STT) collected but not deposited for the financial year 2023-24 and prior years. This directive, issued on March 10, follows a communication from the Income Tax Department, which highlighted discrepancies in STT remittances by some market intermediaries. The NSE's circular, responding to a request from the Joint Commissioner of Income Tax, requires members to submit details of any excess STT retained within seven days. Furthermore, brokers must remit the outstanding amounts along with interest calculated at 1% per month for any delays. The STT is a crucial component of the taxation framework governing trading on Indian stock exchanges, applicable to various transactions, including equity trades and derivatives. Brokers are responsible for collecting this tax from investors and ensuring its timely deposit with the government. Non-compliance can lead to penalties under tax regulations. The NSE has encouraged its members to contact its taxation department for any clarifications regarding this mandate.