New Delhi, Mar 9: The Income Tax Department has uncovered large-scale suppression of sales in restaurants across the country after conducting a nationwide verification exercise in the Food and Beverage (F&B) sector.
According to officials, the department carried out an investigation in November 2025 to analyse patterns of tax evasion among restaurants. During the exercise, it was found that several establishments were allegedly deleting bulk bills and making other modifications in their records to suppress their actual sales.
Using AI-enabled analytical tools, the department examined transactional data of nearly 1.77 lakh restaurants in the F&B sector. The data was compared with the turnover declared by these restaurants in their Income Tax Returns. The analysis reportedly revealed widespread under-reporting of income.
Officials said that in several cases, the sales recorded in transaction data did not fully match the figures shown in financial accounts or tax filings, indicating that certain transactions had been excluded from the reported sales.
Following the findings, the Income Tax Department conducted a nationwide survey on March 8, 2026, covering 62 restaurants across 46 cities in 22 states. Preliminary results from the exercise revealed suppression of sales amounting to around ₹408 crore. Investigations in the matter are currently underway.
The department said it continues to emphasise voluntary compliance and a trust-based approach. As part of this effort, it has launched the SAKSHAM NUDGE campaign to guide and advise taxpayers to correct discrepancies in their filings.
Officials said emails and messages will be sent to around 63,000 identified restaurants in the first phase, asking them to update their returns under Section 139(8A) of the Income Tax Act before March 31, 2026.
