Addressing the senior officers of the Central Board of Direct taxes (CBDT), he asked tax officials to be assessee friendly while aiming at widening the tax base.
The Revenue Department officials, Jaitley said, should not "lose sight of domestic black money keeping in view its much high magnitude".
"He asked the senior officers of the I-T department to make their best efforts to chase those sectors where the domestic black money is most prevalent," a finance ministry statement said.
"The recovery of black money and taxes due thereon will also help the department in achieving its tax collection targets," Jaitley said.
The Minister was speaking at a review meeting of Principal Chief Commissioners, Principal Directors General, Chief Commissioners of I-T here today in order to assess the revenue collection target for 2014-15 fiscal.
Certain sectors of economy such as services sector are doing well while other sectors including manufacturing sector are gradually picking up compared to previous years, he said, adding that the economy will perform in the second half.
With the rise in economic activity, Jaitley expects the revenue collection targets to be achieved.
Gross income tax collection grew 13.6 per cent to over Rs 3.77 lakh crore between April-October 20. The net collections stood at over Rs 2.96 lakh crore.
The government aims to collect Rs 7.36 lakh crore from direct taxes in current fiscal.
Jaitley said: "Senior officers of the department shall act and behave in a assessee friendly manner but at the same time ensure that tax payers do not evade tax and must pay the taxes due from them".
The meeting was also attended among others by the Minister for State for Finance Nirmala Sitharaman, Revenue Secretary Shaktikanta Das, Chairman CBDT K V Chowdary, Members of CBDT, senior officers of Finance Ministry and CBDT.
In its fight against black money stashed abroad, the Centre yesterday gave to the Supreme Court a list of 627 Indians who have accounts in HSBC Bank, Geneva, in which tax probe for suspected black money has to be completed by March next year.
A Supreme Court appointed Special Investigation Team (SIT) will conduct a probe against the account holders.