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<h1>Recognized stock exchanges, mutual funds, and insurers must collect securities transaction tax; pay by 7th of next month.</h1> Every recognized stock exchange must collect securities transaction tax from buyers or sellers involved in taxable securities transactions at specified rates. Mutual funds and insurance companies must collect this tax from sellers of units. Lead merchant bankers must collect the tax during initial public or business trust offers. The collected tax must be paid to the Central Government by the seventh day of the following month. If any entity fails to collect the tax, it remains liable to pay it to the government.