The Income Tax Department has detected potential tax evasion exceeding ₹25,000 crore in the restaurant sector. Data from Swiggy and Zomato reportedly indicates that around 8,000 restaurants failed to file income tax returns, with estimated evasion of ₹7,500 crore. Authorities are planning data-driven enforcement measures to improve tax compliance.
The Income Tax Department has detected potential tax evasion exceeding ₹25,000 crore in the restaurant sector, according to reports based on data obtained from food delivery platforms Swiggy and Zomato. The data indicates that around 8,000 restaurants allegedly failed to file their income tax returns despite estimated tax evasion of approximately ₹7,500 crore identified in the latest analysis. Earlier surveys had also highlighted widespread underreporting of income among restaurants. Authorities are planning to strengthen targeted enforcement by using data analytics and information from digital platforms to identify discrepancies in reported income, improve tax compliance and curb tax evasion. The findings underline the growing focus on digital transaction data to detect possible tax non-compliance in the food service industry. CASansaar