Manoj Kucchal, a hardware vendor in Bijnor’s commercial hub, Sadar Bazar, looked harassed as he summoned his chartered accountant for the morning session he has been holding since the taxman knocked on his doors.

The taxman started sending him alerts after vetting Kucchal’s bank accounts to check how much cash was put in it after November 8, the day Prime Minister Narendra Modi demonetised high-value currency notes. “The I-T (income tax) department has served 10 messages on my mobile in the past 10 days. If I do not answer these within 10 days, I will have to pay a penalty ...