Mumbai, March 9: The Income Tax Department has initiated a special campaign across the country to inspect restaurants suspected of underreporting sales. On March 8, surveys were conducted at 62 restaurants located in 46 cities across 22 states, revealing an initial case of approximately ₹408 crores in concealed sales.
The department began investigating tax evasion patterns in the food and beverage sector in November 2025. The inquiry uncovered that some restaurants were deleting large bills or altering them to show lower actual sales.
Using AI-based technology, data from around 1.77 lakh restaurant transactions was analyzed, comparing it with the turnover declared in their income tax returns. The investigation found numerous instances of underreported income, with some recorded sales completely missing from accounts or tax returns.
Following this, the survey on March 8, 2026, identified about ₹408 crores in hidden sales. Further investigations are ongoing.
The Income Tax Department stated that it is promoting voluntary compliance and a trust-based system. To this end, the department has launched the ‘Saksham Naj’ campaign, which aims to guide taxpayers in correcting their mistakes.
In the first phase of the 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.