New Delhi, March 9 A nationwide survey conducted by the Income Tax Department on 62 restaurants across 46 cities in 22 states has revealed suppression of sales amounting to around Rs 408 crore, Finance Ministry said on Monday.
The I-T Department carried out investigation relating to tax evasion pattern in Food and Beverage sector in November 2025.
During the exercise, it was found that several restaurants were engaged in deletion of bulk bills and other modifications to suppress the actual sales.
“Advanced analytics of transactional data from about 1.77 lakh restaurants in the F&B sector was carried out using AI-enabled analytical tools. The data was compared with the turnover declared in their Income Tax Returns,” said the ministry in a statement.
The analysis revealed large-scale under-reporting of income, according to the Department.
In some cases, recorded sales were not fully reflected in financial accounts or tax filings, and certain transactions were excluded from reported sales.
“Consequently, on 8 March 2026, a nationwide survey was conducted on 62 restaurants across 46 cities in 22 States. On a preliminary basis, the exercise revealed suppression of sales amounting to around Rs. 408 crore. Investigations in this regard are underway,” the ministry informed.
The Department said it continues to emphasise voluntary compliance and a trust-based approach.
It has commenced the SAKSHAM NUDGE campaign to guide and advise taxpayers to correct their mistakes.
Taxpayers are encouraged 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 identified 63,000 restaurants, requesting them to update their returns before March 31, 2026.
A comprehensive picture of tax evasion would appear after the investigation finally gets over.
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