Economy · 13 Aug 2026

Securities Transaction Tax collection growth

Which one of the following statements regarding India's FY 2026-27 tax collection data (as of August 10, 2026) is NOT correct?

AOverall net direct tax collection grew by 23% to reach ₹8.11 lakh crore.

BSecurities Transaction Tax (STT) collections rose by 51% to ₹33,824 crore.

CSTT collection growth was reported to be slower than the growth rate of corporate and non-corporate income tax.

DThe disproportionate STT growth was attributed to surging retail investor trading activity rather than underlying earnings growth.

This question is based on: Net Direct Tax Mop-Up Rises 23% So Far - But What's Actually Driving It?

Take this in full test mode → Instructions for 13 Aug 2026

About this question

Why in news

A Rajya Sabha reply revealed that STT collections grew 51% in FY 2026-27, more than double the pace of overall direct tax growth, reflecting a surge in retail investor trading activity.

Why for UPSC

UPSC often uses "not correct" questions on fiscal data to test whether aspirants can spot a reversed comparison - here, mistaking which tax category grew faster is the precise trap being tested.

Prelims summary

In FY 2026-27, net direct tax collection grew 23% to ₹8.11 lakh crore, while STT collections grew a much faster 51% to ₹33,824 crore - driven by retail trading activity, not income growth and thus more volatile than income-linked taxes.

On web, answers are shown once after a test — no save or reattempt. For unlimited reattempts, Hindi medium, and Mentor Observations, use the TAN App.