NEW DELHI — India’s high-income salaried population expanded rapidly in 2025, with the share of salaried taxpayers earning more than Rs 30 lakh a year rising to 23.34 percent from 18.49 percent in 2024, according to a new report released on Wednesday.
The increase points to strong upward mobility among the middle and upper-middle classes, based on data compiled by tax and financial services platform ClearTax.
The findings are drawn from ClearTax’s annual report, “How India Filed in 2025,” which analyzed millions of income tax returns to assess trends in earnings, investments and wealth creation across the country.
The report shows that peak earning years are clearly concentrated in mid-career stages. Nearly 38 percent of salaried taxpayers in the 40–50 age group reported annual incomes exceeding Rs 30 lakh, making this cohort the highest-earning and most significant contributor to tax revenues.
According to the analysis, experience and career stability continue to translate into higher compensation during these years.
The report also highlights a structural shift in how Indians earn their income. Salaries are no longer the sole source for many taxpayers, as evidenced by a sharp rise in ITR-3 and ITR-2 filings. This indicates that a growing number of individuals are earning through business activities, trading and investments, signaling a move toward more diversified income streams.
Investing has become a mainstream financial habit rather than a niche activity. A large share of taxpayers filing ITR-3 reported capital gains, suggesting that equity markets and trading are now part of regular financial planning for many Indians.
Younger Indians are entering the workforce with an investor mindset. Tax filings among individuals under the age of 25 increased significantly, with many first-time filers already reporting capital gains.
Millennials between the ages of 25 and 35 are playing a central role in this transition, accounting for the largest share of complex tax filings driven by active investing, trading and multiple income sources.
The report added that while interest in crypto assets persists, such investments remain a high-risk supplement rather than a mainstream component of most taxpayers’ portfolios. (Source: IANS)
