I-T department estimates 25k cr tax evasion by restaurants
The Indian Income Tax Department has identified approximately Rs 25,000 crore in potential tax evasion by restaurants. The investigation utilized data from food delivery platforms like Swiggy and Zomato to uncover significant under-reporting of income.
Why it matters
This reflects a broader global trend of tax authorities using digital platform data to crack down on the shadow economy and improve tax compliance in the service sector.
NEW DELHI: The income tax department has detected massive evasion by restaurants, which may be of the order of over Rs 25,000 crore.Just based on data from Swiggy and Zomato, the evasion is pegged at Rs 7,500 crore as 8,000 restaurants have got TDS mentioned against them but have not bothered to file returns. The data is based on an analysis of data for four years from 2021-22 to 2024-25. Data for the last financial year is not yet available.In 2024-25 alone, these restaurants raked in close to Rs 2,700 crore of revenue for which tax of Rs 25 crore or so has been deducted. Every time you order food on one of the food delivery apps, 0.1% of the bill amount is deducted as tax (TDS), which used to be 1% in the initial years.
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