Demonetisation results in formalisation of Economy: Arun Jaitley

The Finance Minister Arun Jaitley on 07-12-2018 said that demonetization resulted in the formalization of the economy and increased tax base, prompting the government to earmark more resources for the poor and infrastructure development and for first four years the number of income tax returns filers has gone up to 6.86 crores from 3.8 crores in May 2014.

The NDA government announced in facebook for the second anniversary of Demonetisation.

Benefits and Growth of India after Demonetisation

  • Doubling the assessee base in the last five years of the administration.
  • More formalization, more revenue, more resources for the poor, better infrastructure, and a better quality of life
  • GDP ratio has gone up to 5.4 % post-GST, from 4.4 % in 2014-15
  • Move from cash to digital transactions
  • Specified bank notes (SBNs) allowed being deposited in banks with unusual deposits coming under income tax scrutiny
  • The indigenously developed a payment system of unified payments interface (UPI) and RuPay card have reached 65 percent of the payments done through debit and credit cards
  • Digital payments have risen sharply and become commonplace and Fake notes are out

Arun Jaitley said with the implementation of the goods and services tax (GST), it is now becoming increasingly difficult to evade the tax system and the indirect tax to