CBDT press release · 10 Mar 2026
Official title
Income tax Department carries out nation-wide verification exercise on Restaurants suppressing turnover
Official record
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Check the official recordThe Income Tax Department conducts a nation-wide survey on restaurants to address tax evasion through turnover suppression. The Department uses AI-enabled tools to analyze transactional data from 1.77 lakh restaurants. This analysis identifies large-scale under-reporting of income. The Department conducts surveys on 62 restaurants across 46 cities. These surveys reveal sales suppression of Rs. 408 Crores. The Department starts the SAKSHAM NUDGE campaign to encourage voluntary compliance. It sends communications to 63,000 identified restaurants. These restaurants must update their Income Tax Returns under Section 139(8A) of the Income Tax Act. Taxpayers must complete this update before 31 March 2026.
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Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 09 March, 2026
Press Release
Income tax Department carries out nation-wide verification exercise on Restaurants suppressing turnover
Income tax Department carried out investigation relating to tax evasion pattern in Food & 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. The analysis revealed large-scale under-reporting of income. 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 Crores. Investigations in this regard are underway.
The Department 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 31 March 2026.
(V. Rajitha)
Commissioner of Income Tax
(Media & Technical Policy) &
Official Spokesperson, CBDT
