Growing share of Indians building wealth beyond traditional salaries: ClearTax report

Indian taxpayers are increasingly earning money beyond traditional salaries through investments, freelancing, side hustles, trading and business ventures, according to ClearTax data for Assessment Year (AY) 2026-27.

The findings indicate that taxpayers are managing more diverse and complex financial portfolios. Younger professionals are also entering investment markets earlier, while more women are reporting capital gains and moving into higher income brackets.

Non-ITR-1 returns accounted for 62% of all filings on the platform in AY 2026-27, rising from 53% in AY 2025-26 and 40% in AY 2024-25. ITR-2 and ITR-3, which cover income such as capital gains, business earnings and other sources, together represented 57.2% of filings. Their combined share was 36.2% two years earlier.

About 47% of self-filers reported income from investments, business activities, freelancing or cryptocurrency in AY 2026-27. This was a substantial increase from 9.5% in AY 2022-23.

The proportion of taxpayers declaring at least two non-salary income sources also rose sharply, climbing from 3.5% to 24% over the same period. The trend suggests that financial security is becoming less dependent on a single monthly salary as individuals take greater control of how they build wealth.

Young taxpayers file more complex returns

The data showed growing participation by young Indians in equity markets and independent work. Among self-filers under the age of 25, 75% submitted complex returns in AY 2026-27, compared with 60% in the previous assessment year.

Within this age group, the share of ITR-3 filings increased from 28% to 44%, while ITR-1 filings declined from 41% to 25%. This shift indicates that many young taxpayers now have income from business, professional activities, investments or other sources requiring more detailed tax returns.

Women expand their financial participation

Women also recorded stronger participation in investment-related income. Around 30.5% of women filing through the platform reported capital gains in AY 2026-27, up from 26.1% in AY 2025-26.

Meanwhile, the share of women self-filers earning more than Rs 50 lakh increased from 3.7% to 5.1%. The rise points to a growing presence of women in higher income brackets and broader participation in wealth-building opportunities.

Overall, the filing patterns reflect a wider transition in household finances, with more Indians combining salaries with investments, entrepreneurship and independent work to create multiple sources of income.