Securities transaction tax mop-up rises 14% despite sharp sell-off

A rebound in the market coupled with higher retail participation has boosted securities transaction tax (STT) collection to Rs 2,568 crore, up 14 per cent in the first quarter of financial year 2020-21.

According to an official with the income tax (I-T) department, despite a slowdown in the economy because of the Covid-19 pandemic, which impacted both personal income tax and advance tax collections of the first quarter, the mop up from STT showed double-digit growth. 

The department collected Rs 2,568 crore against Rs 2,262 crore in the corresponding period a year ago. The government expects to collect Rs 13,000 crore in