Whalesbook
Economic Shift: From Salaries to Diversified Earnings
ClearTax's "How India Filed in 2025" report indicates a profound shift in the Indian economy. Taxpayers are increasingly moving away from a singular reliance on salaries towards a more complex income structure. This evolution is prominently captured through increased filings for business, trading, investment, and digital asset income.
ITR-3 and ITR-2 See Substantial Growth
Filings for Income Tax Return (ITR) forms reflecting broader income sources have surged. ITR-3, used for business and trading income, jumped by 45.4% year-on-year. Concurrently, ITR-2, which covers capital gains and investment income, saw a 17% increase. These figures underscore a growing trend where tax returns are capturing a wider spectrum of earnings beyond traditional employment.
Millennials Drive Business and Trading Income
The younger demographic is at the forefront of this economic diversification. Individuals aged 25-35 constituted 42.3% of all ITR-3 filers, representing the largest segment reporting business or trading income. ClearTax notes their strong engagement with digital platforms and varied income streams.
Gen Z Embraces Early Investment
Taxpayers under 25 are also demonstrating a proactive approach to financial management. An 18% rise in ITR-2 filings among this group suggests early adoption of investment strategies, with many reporting capital gains alongside their initial salary or internship earnings.
Virtual Digital Assets Integrate into Portfolios
The emerging role of virtual digital assets (VDAs), including cryptocurrencies, is becoming more apparent. While still a niche area, 76.6% of VDA filers were men, with nearly 40% falling within the 25-35 age bracket. Significantly, about half of these young crypto investors also filed ITR-3, indicating the integration of digital assets into broader financial planning.
Prime Earning Decade Identified
For traditional salaried individuals, the report pinpoints the prime earning phase. Among this group, 38.1% of those aged 40-50 reported annual incomes exceeding ₹30 lakh, marking a decade of peak financial earnings for a significant portion of the workforce.
Archit Gupta, Founder & CEO of Clear, commented on the findings, stating, "The surge in multi-income filers shows that Indians are combining salary with capital gains, trading, and business income. Younger taxpayers are entering the system with investing behaviour previously seen only among seasoned investors."