Is Securities Transaction Tax unconstitutional? SC to hear petition

Business Oct 06, 2025

The Supreme Court has agreed to look into whether the Securities Transaction Tax (STT)—a fee added to every trade in stocks, derivatives, and mutual funds since 2004—is actually constitutional.
The petitioner argues STT is unfair because it taxes all trades, even those that lose money, and adds another layer of tax on top of capital gains.

STT is expected to generate ₹78,000 crore in FY2026

STT brings in serious cash for the government—₹44,538 crore by January 2025 and a projected ₹78,000 crore for FY2026—but it also bumps up costs for anyone trading frequently.
Since you pay STT no matter what (even if your trade tanks), many feel it's a double hit.
The Supreme Court's decision could shake up how much investors pay and how the government collects revenue from India's booming markets.