The Income-Tax Department in India has sent emails to 63,000 restaurants, requesting them to update their income returns after an investigation revealed large-scale under-reporting.
The investigation, which used artificial intelligence tools to analyze transactional data from 1.77 lakh restaurants, found that several restaurants were deleting bulk bills and modifying sales to suppress actual income.
The Department has conducted a nationwide survey, revealing suppression of sales amounting to around Rs. 408 crore, and is continuing to emphasize voluntary compliance and a trust-based approach.
Taxpayers are encouraged to file updated returns under Section 139(8A) of the Income Tax Act, with the first phase of emails and messages sent to the identified 63,000 restaurants requesting them to update their returns before March 31, 2026.
