Tax Evasion Crackdown: Restaurants Under Scrutiny

The Income-Tax Department has launched a nationwide crackdown on restaurants suspected of under-reporting sales via manipulated billing software, sources revealed Monday. This investigation was initiated in Hyderabad, in response to findings from the department's local investigative wing.

Official sources indicated that tax authorities are scrutinizing several restaurants, including at least five located in Delhi. This effort involves a meticulous survey of their office premises to examine the billing systems in use. The verification process is anticipated to wrap up in a few days.

Authorities discovered that certain hotels and restaurants had been allegedly utilizing modified billing software to under-report income, potentially resulting in tax evasion amounting to crores in Hyderabad alone. The multi-city operation, commencing last Sunday, aims to ascertain the magnitude of this evasion practice.