India tax filers shift toward investments and trading, says ClearTax data

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The data outcome also signals a broader move toward multi-source income and trading activity across the tax system

By BL Mumbai Bureau

Updated - November 02, 2026 at 06:12 PM.

Filers with the smallest reported incomes showed some of the highest rates of return complexity

More than 62 per cent of all tax returns filed on ClearTax in Assessment Year (AY) 2026-27 went beyond a basic salary form, up from 53 per cent the previous year and 40 per cent two years ago, according to the company’s annual filing report released Monday.

The data signals a broad structural shift in how Indians earn and report income. Nearly half, 47 per cent, of self-filers reported income from investments, business, freelancing, or cryptocurrency in AY 2026-27, compared to just 9.5 per cent in AY 2022-23. The share of filers combining two or more such non-salary income sources rose from 3.5 per cent to 24.4 per cent over the same four-year period.

ITR-3 Surge

Capital gains reporting saw particularly sharp growth. The proportion of filers reporting capital gains reached 41.7 per cent in AY 2026-27, up 7.3 percentage points from 34.4 per cent the year before. ITR-3 filings, used by traders reporting business income from markets, surged from 20.6 per cent to 28.4 per cent of all filings in a single year, more than doubling its share from 13.5 per cent two years ago.

The trend is most pronounced among younger filers. Among those under 25, 75 per cent filed a complex return in AY 2026-27, up from 60 per cent the prior year, the steepest rise of any age group. ITR-3 became the most commonly filed return in this age group, rising from 28 per cent to 44 per cent, while basic salary returns (ITR-1) fell from 41 per cent to 25 per cent.

Small Incomes

Contrary to expectations, filers with the smallest reported incomes showed some of the highest rates of return complexity. Among those earning under ₹1 lakh, 73 per cent filed a complex return, higher than every income bracket up to ₹50 lakh, driven largely by market trading and freelancing activity.

Women filers are also moving up income brackets faster than men, with those earning above ₹50 lakh growing 38 per cent year-on-year compared to 27 per cent for men, though the absolute gap remains wide.

Published on November 2, 2026

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