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The Income Tax Department’s survey on March 8, 2026, found restaurants in India suppressed Rs 408 crore in sales. The AI analysis covered 62 restaurants in 46 cities.
SAKSHAM NUDGE Campaign Targets 63,000 Restaurants For Tax Return Updates
The Income Tax Department has conducted a nationwide survey across dozens of cities after detecting large-scale underreporting of sales in the food and beverage sector.
The Income Tax Department has uncovered significant suppression of sales by restaurants across India following a nationwide verification exercise conducted on March 8, 2026. According to official information released by Press Information Bureau, preliminary findings suggest that restaurants may have suppressed sales worth around ₹408 crore.
The operation covered 62 restaurants spread across 46 cities in 22 states and is part of a broader effort to investigate potential tax evasion patterns within the food and beverage sector.
AI-Based Data Analysis Reveals Widespread Underreporting
The investigation follows an earlier exercise carried out in November 2025, when the Income Tax Department began analysing tax compliance patterns in the food and beverage industry.
Using AI-enabled analytical tools, authorities analysed transactional data from around 1.77 lakh restaurants. The data was then compared with turnover figures declared in their income tax returns.
According to the department, the analysis flagged several discrepancies. In multiple cases, recorded sales transactions did not match the figures reported in financial accounts or tax filings. Authorities also identified instances where bulk bills were allegedly deleted or modified to reduce reported sales.
The data-driven analysis pointed to widespread underreporting of income in the sector, prompting the department to conduct targeted verification surveys earlier this week.
Nationwide Survey Conducted Across 46 Cities
Following the findings from the data analysis, the Income Tax Department conducted surveys at selected restaurant establishments on March 8.
The exercise covered 62 restaurants across 46 cities in 22 states. Officials said preliminary findings indicate suppression of sales amounting to approximately ₹408 crore. Investigations related to the exercise are ongoing, and authorities may examine additional records as the probe continues.
SAKSHAM NUDGE Campaign Encourages Voluntary Compliance
Alongside enforcement actions, the Income Tax Department has launched the SAKSHAM NUDGE campaign aimed at encouraging voluntary tax compliance.
Under the initiative, taxpayers are advised to review their filings and correct any discrepancies. Restaurants can update their returns under Section 139(8A) of the Income Tax Act.
In the first phase of the campaign, the department plans to send emails and messages to about 63,000 identified restaurants. These establishments will be requested to update their tax returns before March 31, 2026.
Officials said the initiative reflects the department’s continued focus on a trust-based compliance framework while using data analytics to detect potential irregularities.
March 10, 2026, 17:46 IST
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