IGI Logo

India's tax filing landscape is undergoing a significant transformation, with taxpayers increasingly reporting income beyond traditional salaries. According to proprietary filing data from ClearTax, investment income, business earnings and other non-salary income streams are becoming mainstream, reflecting a structural shift in how Indians earn, invest and build wealth.

The findings, based on income tax returns filed for the current assessment year, show a marked increase in taxpayers reporting capital gains and business income, alongside growing participation in financial markets across age groups.

Salary-only taxpayers fall below 50%

For the first time, taxpayers reporting salary as their sole source of income have fallen below the halfway mark. Only 42% of taxpayers filing through ClearTax this year reported salary as their only source of income, compared with 82% in AY 2022-23, indicating that multiple income streams are increasingly becoming the norm.

Capital gains become a mainstream income source

Participation in capital markets has accelerated significantly. Thirty-nine percent of taxpayers have reported capital gains in their returns this year—a 4.5-fold increase from 9% in AY 2022-23. The proportion has already surpassed last year's levels and is expected to increase further as more taxpayers file before the extended deadline for applicable categories.

Business income records six-fold growth

Entrepreneurship and independent work are also reshaping India's tax base. Taxpayers reporting business income now account for 26% of all returns filed through ClearTax, up from 4% in AY 2022-23—a six-fold increase. The trend reflects the growing contribution of freelancers, consultants, creators and small business owners to India's formal economy.

Young Indians are filing increasingly sophisticated returns

India's youngest taxpayers are entering the financial system with more diversified income profiles than ever before. Nearly 76% of taxpayers below the age of 25 are filing returns with multiple income sources, compared with 14% in AY 2022-23, driven by growing participation in investing, trading and freelance work alongside salaried employment.

Senior citizens deepen participation in capital markets

The shift is visible across generations. More than 53% of senior citizen taxpayers now file returns with multiple income sources, compared with 28% four years ago. Meanwhile, the proportion of senior citizens reporting capital gains has nearly tripled from 15% to 42%, highlighting increasing participation in wealth creation through financial assets.

Higher-income taxpayers on the rise

The data also points to a growing affluent taxpayer base. Thirty-two percent of returns filed this year report gross income exceeding ?20 lakh, compared with 22% in AY 2023-24, reflecting rising incomes driven by investment gains, entrepreneurship and diversified earnings.

Commenting on the findings, Archit Gupta, Founder and CEO, ClearTax, said:

"The 2026 filing season reflects a fundamental shift in India's financial journey. Taxpayers are no longer relying solely on salary income—they are increasingly participating in capital markets, building businesses and creating multiple income streams. As financial lives become more complex, tax filing is evolving from a compliance exercise into an important part of wealth management. At ClearTax, we are focused on simplifying this complexity through seamless automation, including auto pre-fill, capital gains imports from over 80 leading brokers, 100% accuracy and free notice protection, enabling taxpayers to file with confidence."

The findings underscore India's evolving financial ecosystem, where rising retail participation in capital markets, entrepreneurship and digital-first investing are reshaping the profile of the modern taxpayer. As wealth creation becomes increasingly diversified, tax filing is emerging as a key touchpoint in every individual's financial journey.

Above views are of the author and not of the website kindly read disclaimer