The Income Tax Department conducted a nationwide verification exercise targeting tax evasion patterns in the Food and Beverage (F&B) sector. An investigation carried out in November 2025 revealed that several restaurants were suppressing sales by deleting bulk bills and modifying transaction records. Using AI-enabled analytical tools, the Department analysed transactional data of approximately 1.77 lakh restaurants and compared it with the turnover reported in their Income Tax Returns. The analysis identified large-scale under-reporting of income, including cases where recorded sales were not fully reflected in financial accounts or tax filings and certain transactions were excluded from reported sales. Based on these findings, a nationwide survey was conducted on 8 March 2026 covering 62 restaurants across 46 cities in 22 States, revealing preliminary suppression of sales amounting to about ₹408 crore. Investigations are ongoing. The Department has also launched the SAKSHAM NUDGE campaign, encouraging voluntary compliance and asking around 63,000 identified restaurants to file updated returns under Section 139(8A) before 31 March 2026.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
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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
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Ministry of Finance
Income tax Department carries out nation-wide verification exercise on restaurants suppressing turnover
IT Department conducted a nationwide survey on 8th March 2026 on 62 restaurants across 46 cities in 22 States, revealing suppression of sales of around Rs. 408 crore
IT Department continues to emphasise voluntary compliance and a trust-based approach, and has commenced the SAKSHAM NUDGE campaign to guide and advise taxpayers to correct their mistakes
In the first phase of SAKSHAM NUDGE campaign, emails and messages will be sent to identified 63,000 restaurants, requesting them to update their returns before 31 March 2026
Posted On: 09 MAR 2026 9:25PM by PIB Delhi
The 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 crore. 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.
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