Description

BSE issues circular directing member brokers/sub-brokers to furnish details of excess STT collected and retained for FY 2023-24 and preceding years, and remit the same with interest to BSE Limited within 7 days.

Summary

BSE has issued a circular, pursuant to 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), directing all member brokers and sub-brokers to disclose and remit any excess Securities Transaction Tax (STT) collected and retained for FY 2023-24 and preceding years as on March 31, 2023. The excess STT must be remitted along with interest at 1% per month of delay, by account payee cheque drawn in favor of “BSE Limited”.

Key Points

  • Income Tax Department identified instances of excess STT collected and not remitted to the Government account by certain brokers/sub-brokers.
  • BSE issued this circular on instructions from the Joint Commissioner of Income Tax, Range 7(1), Mumbai.
  • All member brokers/sub-brokers must furnish details of excess STT collected and retained for FY 2023-24 and for preceding years as on March 31, 2023.
  • Excess STT must be remitted with interest at 1% per month of delay to BSE Limited.
  • Remittance must be made via account payee cheque drawn in the name of “BSE Limited”.
  • Cheque and details to be sent to Nikhil Kataria / Libin Mathews, Finance & Accounts Department, BSE Limited, 25th Floor, PJ Towers, Dalal Street, Fort, Mumbai – 400001.
  • BSE will deposit the collected amount to the Government Account.

Regulatory Changes

No new regulatory framework introduced. This circular enforces existing STT remittance obligations under Section 102(1) of the STT provisions, acting on a directive from the Income Tax Department.

Compliance Requirements

  • Member brokers and sub-brokers must identify any excess STT collected and retained for FY 2023-24 and preceding years as on March 31, 2023.
  • Submit details of such excess STT directly to BSE Limited, with intimation to the office of Joint Commissioner of Income Tax, Range 7(1), Mumbai.
  • Remit the excess STT along with interest at 1% per month of delay via account payee cheque in the name of “BSE Limited”.
  • Correspondence and cheques to be captioned/labeled as “Excess STT Retained – BSE”.
  • For clarifications, contact: bse.tax@bseindia.com or 022-22728867 (Nikhil Kataria / Libin Mathews).

Important Dates

  • Reference notice date: March 05, 2026 (ITBA/COM/F/17/2025-26/1086923338(1))
  • Circular date: March 11, 2026
  • Compliance deadline: Within 7 days from the date of publishing of this circular (i.e., by approximately March 18, 2026)
  • Relevant tax period: FY 2023-24 and preceding years as on March 31, 2023

Impact Assessment

This circular primarily affects BSE member brokers and sub-brokers who may have inadvertently or otherwise collected excess STT and not remitted it to the Government. Financial impact includes the principal excess STT amount plus 1% monthly interest for the period of delay. Non-compliant brokers face potential income tax proceedings under Section 102(1) of the STT provisions. The circular does not directly affect equity markets or listed companies, but reinforces regulatory oversight of brokerage operations and tax compliance.

Impact Justification

Regulatory directive from Income Tax Department requiring brokers to remit excess STT with interest; non-compliance carries financial and legal risk for member brokers.