I-T dept sends notice to 63,000 restaurants over tax evasion charges after hidden sales worth ₹408 cr revealed
The Income Tax Department identified Rs 408 crore in sales under-reporting by 63,000 restaurants and is urging updates by March 31, 2026, under the Saksham Nudge campaign.
- On March 10, the Department said it will send emails to around 63,000 restaurants to update returns before March 31, 2026, after revealing Rs 408 crore in suppressed sales.
- Using AI-enabled tools, officials analysed transactional data from about 1.77 lakh restaurants as the probe began in November 2025 to examine F&B sector tax-evasion patterns.
- Survey teams visiting premises found billing deletions and modifications, and on March 8, surveys were carried out at 62 restaurants across 46 cities in 22 states.
- With investigations underway, I-T officials examine books, bank accounts, cash, stock and non-valuable documents during surveys under Section 133A, the Department said.
- The Department launched the SAKSHAM NUDGE campaign to guide taxpayers, following a probe into a Hyderabad biryani chain alleged to have suppressed Rs 70,000 crore in the Food & Beverage sector.
15 Articles
15 Articles
Income Tax Department Finds Rs 408 Crore Sales Suppression in Nationwide F&B Sector Verification Exercise
Get latest articles and stories on Business at LatestLY. The Income Tax Department carried out a nationwide verification exercise on restaurants regarding turnovers, revealing a suppression of sales amounting to approximately Rs 408 crore. According to a Ministry of Finance press statement, the investigation targeted tax evasion patterns within the Food & Beverage (F&B) sector following preliminary data analysis initiated in November 2025. Busin…
I-T dept sends notice to 63,000 restaurants over tax evasion charges after hidden sales worth ₹408 cr revealed
India’s Income-Tax Department found restaurants under-reported sales worth ₹408 crore after surveying 62 outlets across 46 cities. Using AI analysis of data from 1.77 lakh restaurants, officials detected bill deletions and software manipulation.
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