This reflects strong upward mobility within the middle and upper-middle class, data compiled by ClearTax showed.
The findings are part of ClearTax’s annual report, ‘How India Filed in 2025’, which analysed millions of income tax returns to understand how Indians are earning, investing, and building wealth.
The report highlights that peak earning years are clearly visible. Nearly 38 per cent of salaried taxpayers in the 40–50 age group earn more than Rs 30 lakh annually, making this cohort the country’s strongest earning and tax-contributing segment.
This trend underlines how experience and career stability continue to translate into higher pay during mid-career years.
At the same time, the report notes a major shift in how Indians earn their income. Taxpayers are no longer dependent only on salaries.
A sharp rise in ITR-3 and ITR-2 filings shows that more people are earning from business, trading, and investments -- indicating a move away from single-income careers toward diversified income streams.
Investing has also become a common financial habit rather than a niche activity. A large majority of taxpayers filing ITR-3 reported capital gains, suggesting that equity markets and trading are now part of regular financial planning for many Indians.
Young Indians are entering the workforce with an investor mindset. Tax filings among people below the age of 25 rose strongly, and many first-time filers already reported capital gains.
Millennials between 25 and 35 years are playing a key role in this shift. They account for the largest share of complex tax filings, driven by active investing, trading, and multiple income sources.
The report also points out that crypto assets remain a high-risk add-on rather than a mainstream investment.
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