Income Tax Dept's SAKSHAM NUDGE Campaign Prompts Restaurants to Update ITR before March 31

The Income Tax Department has initiated the SAKSHAM NUDGE campaign to encourage voluntary tax compliance among restaurants in India.  

This campaign follows the discovery of significant discrepancies in reported sales, amounting to ₹408 crore, in the food and beverage sector. 

SAKSHAM NUDGE Campaign Details 

After utilising AI-enabled analytics on transactional data from 1,77,000 restaurants, the department identified instances where sales were not accurately reflected in tax filings.  

This led to an investigation revealing under-reported sales across multiple establishments. In a nationwide survey conducted on March 8, 2026, 62 restaurants from 46 cities across 22 states were found with suppressed revenues. 

Steps for Restaurants to Update ITR 

To rectify discrepancies in their filed taxes, restaurants are advised to submit updated income tax returns under Section 139(8A) through the e-filing portal. The necessary steps include: 

• Logging in to the e-filing portal
• Selecting the option for Updated Return (ITR-U)
• Updating income details for any omitted or under-reported revenue
• Paying applicable additional tax, interest, and penalty, if any
• Submitting and verifying the updated return 

Read More: Advance Tax Deadline for FY26 Nears: Taxpayers Must Pay Final Instalment by March 15, 2026! 

Compliance Deadline and Impact 

Identified restaurants have been directed to update their returns before March 31, 2026, to align with the compliance drive. Around 63,000 restaurants will receive direct communication from the tax department, urging them to revisit their financial statements and ensure transparency. 

Conclusion 

The SAKSHAM NUDGE campaign is a significant initiative to enhance voluntary tax compliance in the food and beverage sector, ensuring accurate tax reporting and fostering a responsible tax environment. 

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