Description

BSE issues circular directing member brokers/sub-brokers to disclose and remit excess STT collected and retained for FY 2023-24 and preceding years, as instructed by the Joint Commissioner of Income Tax, Range 7(1), Mumbai.

Summary

BSE has issued a circular instructing all member brokers and sub-brokers to disclose and remit any excess Securities Transaction Tax (STT) collected and retained by them for FY 2023-24 and preceding years (as on March 31, 2023). This directive follows a notice from the Joint Commissioner of Income Tax, Range 7(1), Mumbai (Notice No. ITBA/COM/F/17/2025-26/1086923338(1) dated March 05, 2026), which highlighted that certain brokers/sub-brokers have collected excess STT without remitting it to the Government account.

Key Points

  • Excess STT collected and not remitted to the Government has been identified for FY 2023-24 and preceding years as on March 31, 2023
  • All member brokers/sub-brokers must furnish details of such excess STT to BSE Limited
  • Compliance is required within 7 days of publication of this circular
  • Interest at 1% per month is applicable on delayed remittance
  • Remittance must be made via Account Payee cheque drawn in the name of “BSE Limited”
  • BSE will deposit the collected amounts to the Government Account
  • Contact persons: Nikhil Kataria / Libin Mathews (Finance & Accounts, BSE)

Regulatory Changes

No new regulatory framework is introduced. This circular enforces existing STT remittance obligations under Section 102(1) of the STT provisions, acting on directions from the Income Tax Department (Joint Commissioner, Range 7(1), Mumbai).

Compliance Requirements

  • Member brokers and sub-brokers must identify any excess STT collected and retained for FY 2023-24 and preceding years as on 31.03.2023
  • Submit details of such excess STT directly to BSE Limited, with intimation to the Income Tax office
  • Remit the excess STT amount along with interest @ 1% per month for every month of delay
  • Remittance must be by Account Payee cheque in the name of “BSE Limited”
  • Send cheque and details to: Nikhil Kataria / Libin Mathews, Finance & Accounts Department, BSE Limited, 25th Floor, PJ Towers, Dalal Street, Fort, Mumbai – 400001
  • Contact for clarifications: bse.tax@bseindia.com or 022-22728867

Important Dates

  • Reference notice date: March 05, 2026 (Income Tax Department notice)
  • Circular date: March 11, 2026
  • Compliance deadline: Within 7 days of publication of this circular (on or before approximately March 18, 2026)
  • Applicable period: FY 2023-24 and all preceding years with balances as on March 31, 2023

Impact Assessment

This circular affects member brokers and sub-brokers of BSE who may have collected excess STT and not remitted it to the Government. The 7-day compliance window is tight, requiring prompt internal review of STT accounts. Non-compliance or delay attracts 1% monthly interest. The circular does not affect trading operations or listed securities directly, but has financial and regulatory consequences for brokers with outstanding excess STT. BSE acts as the intermediary for collection and onward remittance to the Government.

Impact Justification

This is a mandatory compliance directive from the Income Tax Department requiring broker action within 7 days, with interest penalties for delay. High importance due to regulatory obligation; medium impact as it targets specific brokers with excess STT rather than the broader market.