India, March 9 -- The Income-Tax Department has sent emails to 63,000 restaurants for under-reporting their incomes, "requesting" them to update their returns before March 31.

The emails were sent to these restaurants after analysing transactional data from about 1,77,000 restaurants using artificial intelligence tools.

The Department conducted an investigation into tax evasion patterns in the Food & Beverage (F&B) sector in November 2025. During the exercise, it was found that several restaurants were engaged in deleting bulk bills and other modifications to suppress actual sales, a finance ministry statement said on Monday.

"Advanced analytics of transactional data from about 1.77 lakh restaurants in the F&B sector was carried out us...