New Delhi, Feb. 3 -- The government's tax revenue landscape is undergoing significant changes, with income tax collections emerging as a crucial component. Despite implementing tax cuts in the latest Budget, the Centre estimates a robust 14.4% growth in income tax collections in 2025-26, thanks to an unexpected boost from Securities Transaction Tax (STT) revenues.

This outlook stems from a strategic policy shift implemented in the previous budget, where the Centre increased STT rates across different trading segments. Specifically, the rate for options trading was raised from 0.0625% to 0.1%. Futures trading saw an increase from 0.0125% to 0.02% in 2024-25 amid growing worries over excessive speculation and risks associated with traders ...