Income Tax Department Targets Restaurant Industry's Sales Reporting

The Income Tax Department conducted a nationwide verification exercise on March 8, 2026, targeting 62 restaurants across 46 cities in 22 States for allegedly suppressing turnover, revealing discrepancies amounting to around Rs. 408 crore. An advanced analytics approach was used to identify under-reporting through sophisticated AI tools, comparing restaurants’ transactional data with declared turnovers in Income Tax Returns. This is the first phase of the SAKSHAM NUDGE campaign aimed at encouraging voluntary compliance and correcting tax reporting errors among 63,000 identified restaurants by March 31, 2026.

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