Income Tax Department has identified 63,000 restaurants for potential income under-reporting. A nationwide survey revealed suppression of sales amounting to Rs 408 crore. Restaurants are urged to file updated returns by March 31, 2026, under the Saksham Nudge campaign. This is a chance to correct mistakes before stricter actions are enforced.
In a press release dated March 9, 2026, the tax department said: “The Income tax Department carried out investigation relating to the tax evasion pattern in the 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.”
What did Income Tax Department’s analysis find
According to the press release, 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 Income Tax Department 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 March 8, 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 almost Rs. 408 crore. Investigations are underway. The department continues to emphasise voluntary compliance and a trust-based approach.
Saksham Nudge
The Income Tax Department press release said that they have started the SAKSHAM NUDGE campaign to guide and advise taxpayers to correct their mistakes.
What to do?The Income Tax Department said that taxpayers are being encouraged to file updated returns under Section 139(8A) of the Income Tax Act.The Income Tax Department said: “In the first phase, emails and messages will be sent to the identified 63,000 restaurants, requesting them to update their returns before March 31, 2026.”
It must be noted that the Nudge campaign is not related to income tax notice. If you are sent a tax nudge under the Saksham campaign, then check your billing software at once to see if there is any modification for under-reporting of sales figures. If there is no under-reporting, then you may not take any action. If there is any under-reporting, then file an updated income tax return (ITR-U) and pay the appropriate penalty and income tax.The reason for coming clean now is better because once the deadline to file ITR-U (March 31, 2026) is over, the Income Tax Department can enforce strict actions for undisclosed income.