It also says that action to allay anxieties about overzealous tax administration is additionally needed for this.The survey states that demonetisation has had short-term costs but would yield long term benefits. These actions would allow growth to return to trend in 2017-18, following a temporary decline in 2016-17, it adds. Incentivisation should be strictly time-bound because as volumes increase digitalisation should become privately profitable. To increase trust in digital payments, cyber security systems must be strengthened considerably. The number of new income taxpayers as well as the magnitude of reported and taxable income should go up over time, says the Survey.

Source: Economic Times January 31, 2017 09:30 UTC