The report added that a notable (8 in 10 or 83.38%) of all ITR-3 filings also reported Capital Gains income, reflecting that traditional salary-only tax return is steadily giving way to filings that combine wages with business income, capital gains, derivatives trading and even digital assets.
Millennials aged 25–35 are at the centre of this transition. Forming the backbone of the economy, data shows they now account for 42.3% of all ITR-3 filings. They also make up the largest share of both new and returning trading taxpayers, pointing to a generation that is actively combining jobs with market income and business activity.
Millennials dominate both new & returning trader filers, confirming this is a long-term, sticky behavior. They are the most active cohort when it comes to managing risk and finances, Archit Gupta, Founder and CEO of ClearTax said.
Gen Z taxpayers are also showing early signs of similar behaviour. Among filers under the age of 25, ITR-2 filings grew 18% year-on-year, indicating that first-time tax returns are increasingly capturing investment income alongside salaries, stipends or internships. “This shows a real shift in how young Indians build wealth. Earlier generations spent their 20s saving slowly and playing it safe. This generation is starting earlier, entering the workforce already investing and trading. For them, wealth-building is no longer tied only to promotions and a higher salary ladder,” Gupta added.
Digital assets, while still a small part of the overall picture, are no longer starkly behind. Data shows that half of them file under ITR-3. Crypto VDA or virtually digital assets have emerged as a high-niche asset class, not a mainstream investment. For these taxpayers, crypto sits alongside salary, stocks, and F&O, not as a side hobby. This points to deliberate, high-risk traders rather than casual participants, ClearTax said in a report.
The line between salaried employee and business owner is fading, as shown by changes in ITR-1 and ITR-4. The tax system is starting to recognize people who earn from multiple sources, not just one. Instead of forcing taxpayers into fixed categories, the system is adjusting to how income works today.For brokers, this bodes well as they are usually the first point of contact to enter the financial system. “For many young Indians, the tax journey now starts with a trade, not a job,” the report added.
The report also highlights how income patterns evolve with age. While younger cohorts focus on diversification and market participation, the peak earning years for salaried taxpayers appear to be between 40 and 50 years of age. In this group, 38.1% of salaried filers report annual incomes exceeding Rs 30 lakh.
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