Central Board of Direct Taxes: The Income Tax Department Carries Out a Nationwide Verification Exercise on Restaurants Suppressing Turnovers

The Central Board of Direct Taxes issued a press release on 6th March 2026 announcing the findings of a nationwide verification exercise targeting the food and beverage sector, which revealed suppressed sales amounting to Rs. 408 crores and simultaneously launched the SAKSHAM NUDGE Campaign to encourage voluntary compliance by taxpayers in the sector.

The CBDT initiated a nationwide verification exercise against the food and beverage sector, focusing on the deletion of bulk bills and the suppression of actual sales. Investigations commenced in November 2025 using advanced AI-based analytics, which involved cross-referencing transactional data against income tax returns to uncover large-scale underreporting. The exercise culminated in a nationwide survey conducted on 8th March 2026.

The survey revealed suppressed sales of Rs. 408 crores across the sector, with further investigations continuing. The CBDT interpreted these findings under the provisions of the Income-tax Act as reflecting deliberate evasion of tax through manipulation of records, thereby undermining revenue compliance. Emphasising a trust-based approach and the importance of voluntary disclosure, the CBDT launched the SAKSHAM NUDGE Campaign to guide and advise taxpayers in the food and beverage sector to proactively correct their income tax returns and ensure accurate reporting of income.