I-T dept sends notice to 63,000 restaurants over tax evasion charges after hidden sales worth ₹408 cr revealed

The Income Tax Department of India has issued notices to approximately 63,000 restaurants following the discovery of concealed sales amounting to ₹408 crore. This revelation emerged after a comprehensive survey of 62 restaurant outlets across 46 cities, highlighting significant discrepancies in reported sales. Utilizing advanced AI technology, tax officials analyzed data from 1.77 lakh restaurants and uncovered evidence of bill deletions and manipulation of sales software. This investigation underscores the government's increasing reliance on technology to enhance tax compliance and identify fraudulent activities. The move is part of a broader initiative to ensure transparency and accountability in the hospitality sector, which has faced scrutiny for tax evasion practices. The department's actions reflect a commitment to bolster revenue collection and uphold the integrity of the tax system in India, particularly as the economy continues to recover post-pandemic. Restaurant owners are now urged to review their reporting practices to avoid potential penalties and legal repercussions.