Overview
The Income Tax Department has carried out an analysis-led compliance intervention in the Food & Beverage (F&B) sector, with a focus on cases involving suppression of turnover. The Department has reiterated its emphasis on voluntary compliance and a trust-based approach, and has commenced the SAKSHAM NUDGE campaign to guide and advise taxpayers to correct mistakes in their filings. [pib.gov.in]
Background
The Department carried out an investigation relating to a tax evasion pattern in the Food & Beverage sector in November 2025. During this exercise, it was found that several restaurants were engaged in deletion of bulk bills and other modifications to suppress actual sales
Data-driven verification and risk identification
Advanced analytics of transactional data from about 1.77 lakh restaurants in the F&B sector was carried out using AI-enabled analytical tools. This transactional data was compared with the turnover declared in 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.
Nationwide survey action (8 March 2026)
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.
SAKSHAM NUDGE campaign — facilitation and voluntary correction
The Department continues to emphasise voluntary compliance and a trust-based approach. In this context, it has commenced the SAKSHAM NUDGE campaign to guide and advise taxpayers to correct mistakes. Taxpayers are encouraged to file updated returns under Section 139(8A) of the Income Tax Act. [pib.gov.in]
In the first phase of the campaign, emails and messages will be sent to identified 63,000 restaurants, requesting them to update their returns before 31 March 2026.
