India’s stock market hitting new highs nowadays which is attracting new investors in the market. As per the details, government earnings through securities transaction tax (STT) have surged to the highest record amid the rising investors in the market. Currently, Nifty is moving around ₹21,900 level. The rising number of investors and traders in the stock market generates more taxes for the government. Let’s discuss each and everything here with all the details.
The government has collected ₹25,000 crore in securities transaction tax (STT) till the end of Jan 2024. if we compare it to the previous year, so it was ₹20,000 crore till January 2023. The details about the STT collection have been shared by the Central Board of Direct Taxes (CBDT) chairman Nitin Gupta.
This massive surge in the STT collection shows the rising turnover of the capital market and people are getting interested in investing and trading in the stock market. Recently on 5th January 2024, India’s stock market became the 5th biggest capital market with a market capitalization of $4 trillion. Due to this massive market cap, India surpassed Hong Kong in the list of largest market cap markets of the world.
Before the presentation of the interim budget 2024, the investors and traders in the stock market expected the removal of STT from the government. Unfortunately, there were no announcements related to STT in the interim Budget 2024. However, if the government takes this step then it may encourage more active investors in the market which leads to the rise of daily transactions in the Indian stock exchanges.