Income Tax Department Finds Rs 408 Crore Sales Suppression in Restaurants After Nationwide Survey



Quick Summary
The Income Tax Department has conducted a nationwide survey of restaurants, uncovering an estimated Rs 408 crore in suppressed sales. Using AI analytics on data from nearly 1.77 lakh establishments, the department identified significant under-reporting of income, including deleted bills and manipulated sales records. As part of a voluntary compliance initiative, the SAKSHAM NUDGE campaign has been launched, with 63,000 restaurants being contacted to update their tax returns by 31 March 2026.

The Income Tax Department has carried out a nationwide verification exercise targeting tax evasion in the food and beverage sector, uncovering significant suppression of restaurant sales. Using AI-enabled analytics to examine transaction data from nearly 1.77 lakh restaurants, the department detected large-scale under-reporting of income, including deletion of bulk bills and manipulation of sales records. On 8 March 2026, authorities conducted surveys at 62 restaurants across 46 cities in 22 sta
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FAQ :

The survey revealed a preliminary suppression of sales amounting to around Rs 408 crore in the food and beverage sector.

A nationwide survey was conducted on 62 restaurants across 46 cities in 22 states.

The department used AI-enabled analytical tools to examine transaction data from approximately 1.77 lakh restaurants and compared it with declared turnover in their tax returns.

It is a campaign launched by the Income Tax Department to encourage voluntary correction of tax filings and guide taxpayers to correct their mistakes.

In the first phase, emails and messages will be sent to approximately 63,000 restaurants.

Restaurants are requested to update their returns before 31 March 2026, using the updated return facility.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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