"The I-T department has started follow up of around 12 lakh assessees who have not filed their returns despite being high spenders," the official told PTI.
The department had earlier issued letters to 1.75 lakh high priority assessees for not filing tax returns.
Finance Minister P Chidambaram had met top I-T officials yesterday to discuss ways to augment revenue collection and widen the tax base.
The department has set up a compliance management cell to monitor return filing and tax payment of the target segment.
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The 1.75 lakh letters which were sent earlier, contained the summary of the information of financial transaction(s) along with a customised response sheet.
The finance ministry officials had verified the record of annual information return (AIR), Central Information Branch (CIB) and TDS/TCS returns.
Besides, they had also verified data available with the Financial Intelligence Unit (FIU).
These letters were a part of the exercise to augment revenue undertaken by Chidambaram after he assumed charge of the Finance Ministry in August last year.
The government plans to collect over Rs 6.68 lakh crore from direct taxes in the current fiscal, up from Rs 5.65 lakh crore in the previous fiscal.