The Income Tax Department revealed a tax evasion case of Rs 70,000 crore in Hyderabad, the capital of Telangana. The department analyzed data of 60 TB data and 1.77 lakh restaurant IDs using generative AI and other AI tools. Investigation revealed that biryani restaurants in Hyderabad had misappropriated transactions worth crores of rupees.
According to the report of Times of India, sales turnover worth Rs 70 thousand crore has been hidden at the national level in the financial year 2019-20. However, the Income Tax Department has not yet decided the amount of penalty and tax on this amount. Investigation revealed that restaurants do UPI, card and cash sales with the help of software. So that no employee tampers with the funds. But restaurants used to hide cash transactions, so that GST and income tax could be avoided.
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Just tested one software
According to the Hyderabad unit of the Income Tax Department, so far the data of only one billing software has been analyzed. More than one lakh restaurants across the country use this software. It has about 10 percent share in the billing software market. This software company is located in Ahmedabad, Gujarat.
Investigation started from Hyderabad reached national level
The Income Tax Department initially conducted the investigation in some cities of Telangana and Andhra Pradesh. After huge tax evasion was revealed, the Central Board of Direct Taxes expanded the scope of investigation to the national level. Billing data worth Rs 13,317 crore out of total sales of Rs 70,000 crore across the country was deleted.
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A lot of hidden sales in these states
Investigation has revealed that sales worth Rs 5,141 crore were hidden in Telangana and Andhra Pradesh. In the investigation of 40 restaurants, sales worth about Rs 400 crore were suppressed. Maximum cases of tax evasion have been reported in Tamil Nadu, Karnataka, Telangana, Maharashtra and Gujarat. Maximum records worth around Rs 2,000 crore were deleted in Karnataka, Rs 1,500 crore in Telangana and Rs 1,200 crore in Tamil Nadu.
However, till now the data of only one software has been analyzed. The department believes that data analysis of other software may have increased the incidence of tax evasion.
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