Photo: PTIThe government added 9.1 million new taxpayers in 2016-17, an 80% increase over the typical yearly rise, highlighting the impact of India’s November demonetisation of high-value currencies. “About 9.1 million new taxpayers have been found, significantly expanding the taxpayer base,” a senior government functionary said on condition of anonymity. He said that every year, typically, India adds around 6 million taxpayers, and around 1 million stop paying taxes (on account of death, retirement, etc). Among the 37 million individuals who filed tax returns in 2015-16, 9.9 million showed income below the exemption limit of Rs2.5 lakh; 19.5 million, income between Rs2.5 lakh and Rs5 lakh; 5.2 million, between Rs5 lakh and Rs10 lakh; and only 2.4 million people showed income over Rs10 lakh. “The number of new income tax payers as well as the magnitude of reported and taxable income should go up over time.

Source: Mint May 11, 2017 18:33 UTC