The Income Tax Department conducted a survey of 62 restaurants in 46 cities across 22 states on March 8, 2026. This revealed concealment of sales of approximately ₹408 crore. The department is emphasizing compliance and a trust-based approach. It has launched the SAKSHAM NUDGE campaign to guide taxpayers in correcting their errors. In the first phase of the campaign, emails and messages will be sent to the 63,000 identified restaurants.
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New Delhi: The Income Tax Department has taken major action against the food and beverage sector. In November last year, it conducted an investigation into tax evasion patterns. During this investigation, it found that many restaurants were deleting bulk bills and making other changes to hide actual sales. It has 63,000 restaurants on its radar. They will be sent emails and messages asking them to update their returns before March 31, 2026.
Transactional data from approximately 1.77 lakh restaurants in the F&B sector was analyzed using AI-enabled analytical tools. The data was compared with the turnover reported in their income tax returns.
What did the analysis reveal?
The analysis revealed widespread underreporting of income. In some cases, recorded sales were not fully reflected in financial accounts or tax filings. Some transactions were excluded from reported sales.
Following this, a nationwide survey was conducted on March 8, 2026, across 62 restaurants in 46 cities across 22 states. This preliminary investigation revealed concealment of sales of approximately ₹408 crore. An investigation is underway.
A nationwide campaign has been launched.
The department is emphasizing voluntary compliance and a trust-based approach. It has launched the SAKSHAM NUDGE campaign to guide and advise taxpayers in correcting their errors.
The campaign encourages taxpayers to file updated returns under Section 139(8A) of the Income Tax Act. In the first phase, emails and messages will be sent to the 63,000 selected restaurants, requesting them to update their returns before March 31, 2026.
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