Demonetisation Effect? 88 Lakh Taxpayers Didn’t File IT Returns in Year of Note Ban, Says Report

New Delhi, April 5: There was a massive increase in the number of stop filers in the financial year 2016-17 when Prime Minister Narendra Modi had announced demonetisation of Rs 500 and Rs 1,000 notes. Stop filers are taxpayers who filed returns in the earlier years but did not do so in the current year even though they are liable to do so. In 2016-17, the number of stop filers jumped to 88.04 lakh from 8.56 lakh in 2015-16.

The 10-fold jump in the number of stop filers is the highest increase in almost two decades since 2000-01, The Indian Express reported. There was a significant decline in the number of stop filers between 2013 to 2016 when the note ban was announced. The number of stop filers was 37.54 lakh in fiscal 2013, 27.02 lakh in fiscal 2014, 16.32 lakh in fiscal 2015 and 8.56 lakh in fiscal 2016. Demonetisation Will Hit GDP, Won't Curb Black Money, RBI Told Modi Government.

Income Tax officials attributed the spike in the number of stop files to job loss or drop in income due to a decline in the economy following demonetisation, the report said. The government, however, had said that the note ban was a success as it added 1.06 crore new taxpayers in the financial year 2016-17, almost 25 per cent more than the previous year. Demonetisation Hit Growth, Jobs, Bank Credit: Economists' Report.

PM Modi on November 8, 2018, had demonetised notes of Rs 500 and Rs 1000, scrapping 86 per cent of available currency notes. The government said demonetisation would help curb black money and a steep rise in Rs 500 and Rs 1,000 notes; check the circulation of fake currency; promote digital transactions and financial inclusion.

(The above story first appeared on LatestLY on Apr 05, 2019 10:24 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).