Younger Indians are also contributing to this transformation. Tax filings among individuals under 25 rose significantly, with many first-time filers already reporting capital gains
India’s high-income salaried population is expanding rapidly, with a growing share of taxpayers moving into the top earning bracket. A new report shows that the proportion of salaried individuals earning more than Rs 30 lakh annually rose from 18.49 per cent in 2024 to 23.34 per cent in 2025, signalling strong upward mobility within the middle and upper-middle classes.
The findings are part of ClearTax’s annual study, How India Filed in 2025, which analysed millions of income tax returns to track how Indians earn, invest and build wealth. According to the report, the sharp rise in high-income salaried taxpayers reflects a maturing workforce benefiting from experience, skill accumulation and career stability.
One of the clearest trends highlighted in the data is the concentration of peak earnings during mid-career years. Nearly 38 per cent of salaried taxpayers in the 40–50 age group reported annual incomes exceeding Rs 30 lakh, making this cohort the country’s strongest earning segment as well as a major contributor to tax revenues. The data reinforces the long-held view that professional experience and leadership roles translate into higher compensation over time.
At the same time, the report points to a structural shift in how Indians generate income. Salaries are no longer the sole or even primary source of earnings for many taxpayers. A notable rise in ITR-3 and ITR-2 filings suggests that more individuals are earning through business activities, trading and investments, indicating a move away from single-income careers toward diversified income streams.
Investing, once considered the domain of a limited few, has now become a mainstream financial behaviour. A large majority of taxpayers filing ITR-3 reported capital gains, highlighting how equity markets and trading have become integral to personal financial planning. The growing comfort with market-linked instruments reflects increasing financial awareness and access to digital investment platforms.
Younger Indians are also contributing to this transformation. Tax filings among individuals under 25 rose significantly, with many first-time filers already reporting capital gains. This points to an early adoption of investing habits and a shift in mindset among new entrants to the workforce.
Millennials aged between 25 and 35 are emerging as key drivers of this change. They account for the largest share of complex tax filings, driven by multiple income sources, active trading and investments. However, the report notes that crypto assets continue to remain a high-risk, supplementary investment rather than a core part of most portfolios.
Overall, the data paints a picture of an evolving Indian taxpayer — wealthier, more financially diversified and increasingly investment-savvy.
