New Delhi, March 10: The Income Tax Department has initiated a special campaign targeting restaurants across the country suspected of underreporting sales.
On March 8, the department surveyed 62 restaurants located in 46 cities across 22 states. Preliminary investigations revealed an alarming case of approximately ₹408 crores in concealed sales.
The department stated that an investigation into tax evasion patterns in the food and beverage sector began in November 2025. It was discovered that some restaurants were deleting large bills or altering them to show lower actual sales.
Using AI-based technology, the department analyzed transaction data from around 1.77 lakh restaurants. This data was compared with the turnover declared in their income tax returns. The investigation uncovered numerous instances of understated income, with some sales not reflected in accounts or tax returns at all.
Following this, a nationwide survey of 62 restaurants was conducted on March 8, 2026, uncovering the initial concealment of approximately ₹408 crores in sales. Further investigations are ongoing.
The Income Tax Department emphasized its commitment to promoting voluntary compliance and trust-based systems. To this end, it has launched the ‘Saksham Naj’ campaign, which aims to guide taxpayers in correcting their mistakes.
In the first phase of this campaign, 63,000 restaurants will receive emails and messages urging them to update their income tax returns before March 31, 2026.
The department has encouraged taxpayers to file updated returns under Section 139(8A) of the Income Tax Act.
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