Luxury brands, hospitals, car dealers under taxman's radar

Some of the hospitals which were found violating tax rules include, Lilavati Hospital Mumbai, Apollo Hospital Delhi, Max hospital etc.

Stores of top luxury brands such as Gucci, Roberto Cavalli, Versace, Missoni, Salvatore Ferragamo and even auto dealers of Harley Davidson, Maruti, Hero, Audi, Jaguar too have been found violating this norm.

The tax department sources told CNBC-TV18 that these establishments were found flouting Section 269ST of the IT Act.

Section 269ST was introduced under the Finance Act, 2017 with effect from April 1, 2017 and puts a limit on cash transactions to put a check on black money and tax theft.

"Lilavati Hospital Mumbai was charged a penalty of Rs 13.19 crore for FY18, Apollo Hospital got Rs 4.90 crore in violation of section 269ST. Investigations are going on in the case of Max Hospitals too,” tax department claimed.

When contacted Max Hospitals told CNBC TV18, "We comply with all guidelines/laws/directives of income tax department."

Apollo Hospitals was also reached out by CNBC-TV18 and the hospital chain said that they are not in receipt of any intimation from the income tax department.

Not just hospitals, stores of top luxury brands such as Gucci, Roberto Cavalli, Versace, Missoni, Salvatore Ferragamo etc. too were seen violating this rule.

The tax department officials say, "Bulk of violations by the luxury retail brands were detected in the Mumbai and Delhi stores."

Auto dealers too are under taxman radar. Some of the auto dealers which have featured in this drive include the ones of Harley Davidson, Maruti, Hero, Audi and Jaguar.