Income Tax SAKSHAM NUDGE Campaign: 63,000 Restaurants Asked to Update Returns After ₹408 Crore Sales Suppression Detected

Income Tax SAKSHAM NUDGE Campaign: 63,000 Restaurants Asked to Update Tax Returns

The Income Tax Department has launched the SAKSHAM NUDGE Campaign after detecting possible tax evasion patterns in the Food & Beverage sector. Using advanced artificial intelligence and analytics tools, authorities examined transactional data from thousands of restaurants and identified significant discrepancies between actual sales and income reported in tax returns.

The campaign aims to encourage voluntary compliance by prompting businesses to correct errors by filing Updated Returns under Section 139(8A) of the Income Tax Act.

Official Press Release

Income tax Department carries out nation-wide verification exercise on restaurants suppressing turnover

IT Department conducted a nationwide survey on 8th March 2026 on 62 restaurants across 46 cities in 22 States, revealing suppression of sales of around Rs. 408 crore

IT Department continues to emphasise voluntary compliance and a trust-based approach, and has commenced the SAKSHAM NUDGE campaign to guide and advise taxpayers to correct their mistakes

In the first phase of SAKSHAM NUDGE campaign, emails and messages will be sent to identified 63,000 restaurants, requesting them to update their returns before 31 March 2026

The Income tax Department carried out investigation relating to tax evasion pattern in 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.

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 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 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.

The Department continues to emphasise voluntary compliance and a trust-based approach. It has commenced the SAKSHAM NUDGE campaign to guide and advise taxpayers to correct their mistakes. Taxpayers are encouraged to file updated returns under Section 139(8A) of the Income Tax Act. In the first phase, emails and messages will be sent to the identified 63,000 restaurants, requesting them to update their returns before 31 March 2026.

— Press Release

Understanding the SAKSHAM NUDGE Campaign

The SAKSHAM NUDGE campaign is a compliance initiative where the Income Tax Department uses data analytics, artificial intelligence, and financial reporting systems to detect mismatches in reported income.

Instead of directly initiating enforcement proceedings, taxpayers are given an opportunity to review and correct their returns voluntarily. This approach is designed to improve compliance while reducing litigation.

Why Restaurants Were Targeted

Analysis of transactional data from nearly 1.77 lakh restaurants revealed instances where sales recorded in digital billing systems were not fully reflected in financial statements or tax filings.

Authorities suspect practices such as deletion of bills or modification of billing records to reduce reported turnover and tax liability.

Key Highlights

• AI analysis of 1.77 lakh restaurants
• Survey conducted on 62 restaurants
• Survey across 46 cities in 22 states
• Suppression detected: ₹408 crore
• 63,000 restaurants under compliance campaign
• Updated return deadline: 31 March 2026

FAQs on SAKSHAM NUDGE Campaign

What is the SAKSHAM NUDGE campaign?

It is a data-driven compliance initiative by the Income Tax Department encouraging taxpayers to voluntarily correct errors in their tax returns.

Which businesses are affected?

The current campaign focuses on restaurants in the Food & Beverage sector where discrepancies between transactional data and reported income were detected.

How many restaurants received notices?

About 63,000 restaurants are expected to receive emails and messages asking them to review and update their returns.

What is Section 139(8A) Updated Return?

Section 139(8A) allows taxpayers to file an updated return if they discover omissions or errors in previously filed returns within the permitted timeframe.

What happens if taxpayers ignore the communication?

If discrepancies are not corrected voluntarily, the Income Tax Department may initiate further scrutiny or enforcement actions.