Nwe Delhi: The Income Tax Department detected restaurant sales suppression of about ₹408 crore after conducting a nationwide survey on restaurants across multiple states.
Officials carried out the verification exercise on March 8. The department surveyed 62 restaurants in 46 cities across 22 states.
The investigation followed an earlier analysis of tax data in the food and beverage sector. Authorities examined transactional records of about 1.77 lakh restaurants.
Officials used AI-enabled analytical tools to compare transactional data with turnover declared in Income Tax Returns.
The analysis revealed large-scale under-reporting of income. In several cases, restaurants allegedly deleted bulk bills or modified records to reduce reported sales.
Authorities also found that some recorded transactions did not appear in financial accounts or tax filings.
Restaurant sales suppression prompts SAKSHAM NUDGE campaign
Following the findings, the Income Tax Department launched the SAKSHAM NUDGE campaign to encourage voluntary compliance.
Under the initiative, the department will guide taxpayers to correct reporting errors and update their returns.
In the first phase, officials will send emails and messages to about 63,000 restaurants identified during the data analysis.
These restaurants have been asked to update their tax returns before March 31, 2026.
Officials said taxpayers can file updated returns under Section 139(8A) of the Income Tax Act.
The department said the campaign promotes a trust-based approach while encouraging businesses to comply with tax rules.
Meanwhile, authorities said investigations into the detected restaurant sales suppression cases are continuing.
