India has cancelled the registration of more than 100,000 companies which were "in violation of laws", Prime Minister Narendra Modi said, in the latest effort by the government against "black money" and tax evasion.

The decision was taken based on an extensive data analysis conducted by the government after Mr Modi in November announced a sudden ban on high-value currency banknotes.

Indian Prime Minister Narendra Modi wants to crack down on tax evasion. Credit:AP

More than 300,000 firms had come under scanner for irregular transactions following the banknote ban, while licences of more than 100,000 firms had been cancelled, Mr Modi said, without naming any company.

"This is not an ordinary decision," Mr Modi said late on Saturday while addressing a gathering of accountants, hours after launching the country's landmark sales tax reform.