Income Tax Returns: 'How India filed in 2026' - 5 trends that reveal how young investors, salaried earners manage money
India's income tax returns are increasingly reflecting a financial life that goes beyond monthly salaries. From young investors reporting stock market losses to salaried taxpayers earning through freelancing and retirees continuing to invest, the latest filing data points to changing money habits across age groups.
According to ClearTax's annual report, How India Filed in 2026, 47.3% of self-filers reported income from at least one source outside their jobs in assessment year (AY) 2026-27. This compares with just 9.5% in AY 2022-23. The share of taxpayers reporting income from two or more non-salary sources also increased from 3.5% to 24.4% during this period.
The report, based on ClearTax's filing data, highlights five trends that offer a glimpse into how Indians are earning, investing and managing their money.
A growing number of taxpayers are earning money beyond their regular jobs. In AY 2026-27, 47.3% of self-filers reported income from at least one non-salary source, including investments, business, freelancing or cryptocurrency.
The proportion has increased steadily from 9.5% in AY 2022-23 and 17.3% in AY 2023-24. More significantly, 24.4% of self-filers reported income from two or more such sources in AY 2026-27, compared with 3.5% four years earlier.
The trend suggests that multiple income streams are becoming increasingly visible in taxpayers' financial lives. For salaried individuals, earnings from investments, freelance assignments and independent business activities are adding to their regular paychecks.
Young taxpayers are increasingly reporting income and financial activity beyond their salaries. Among self-filers below 25, 75% filed complex returns (ITR-2, ITR-3 or ITR-4) in AY 2026-27, compared with 60% in the previous assessment year.
The shift was particularly visible in ITR-3 filings, which increased from 28% to 44% among this age group. Meanwhile, the share filing ITR-1 declined from 41% to 25%.
The under-25 age group recorded the sharpest increase in complex return filings across all age groups. The report points to activities such as stock market trading, freelancing and small business ventures as part of the changing financial landscape among younger taxpayers.
A low reported income does not necessarily translate into a simple income tax return. ClearTax's data shows that 73% of taxpayers reporting gross income below ₹1 lakh filed complex returns in AY 2026-27.
This was higher than the proportion recorded across every income bracket up to ₹50 lakh. Among taxpayers earning ₹1-2.5 lakh, 69% filed complex returns, while the share was 60% in the ₹2.5-5 lakh bracket.
The trend highlights how income sources and financial transactions can make tax returns complicated even when reported earnings are relatively small. Capital market transactions and freelancing are among the activities identified in the report.
Young investors are also more likely to report capital losses. Among self-filers below 25 who reported capital gains or losses in AY 2026-27, 37% reported a loss, the highest proportion among all age groups.
The share declined with age, reaching 29% among taxpayers aged 25-30 and 21% among those above 60.
A similar pattern emerged across income groups. Around 35% of taxpayers reporting gross income below ₹1 lakh reported capital losses, compared with 19% among those earning above ₹50 lakh.
Despite these losses, young investors continued participating in the market. Among first-time filers using ClearTax's expert-assisted plans, 82% filed complex returns in AY 2026-27, compared with 68% in AY 2024-25.
Investment activity continues even after taxpayers move beyond their earning years. In AY 2026-27, 40% of taxpayers above 60 reported capital gains, compared with 35% among those aged 40-50.
However, the income distribution remains different across age groups. While 44% of taxpayers aged 40-50 reported gross income above ₹20 lakh, the corresponding share among those above 60 was just 9%.
More than half of taxpayers above 60 also filed complex returns, indicating that their financial activities extend beyond conventional retirement income sources.
The findings suggest that retirement does not necessarily mark the end of investment activity. Savings accumulated during working years can continue to remain invested, generating income that taxpayers must account for while filing their returns.
Kirti jha
Kirti Jha is a Senior Content Producer at Mint, where she writes on mutual funds, taxation, personal finance and macroeconomic developments. Her reporting focuses on helping readers understand complex financial developments through data-driven, research-backed stories that explain how policy changes, market trends and regulatory decisions affect investors and households. <br><br> Before joining Mint, Kirti worked at ET Money, where she specialised in mutual fund research and investment analysis. She tracked portfolio disclosures, fund manager strategies, sectoral allocation shifts and investment trends, distilling large datasets into investor-focused insights. Her work combined quantitative analysis with consumer-centric storytelling, enabling readers to better understand fund positioning, portfolio changes and long-term investment opportunities.<br><br> Kirti holds a Bachelor's degree in Economics from Indraprastha College for Women, University of Delhi, and a Master's in Finance from the Jindal School of Banking & Finance at O.P. Jindal Global University. Her academic training emphasised analytical thinking, quantitative research and financial decision-making, providing a strong foundation in understanding capital markets, financial systems and economic policy. With a combined experience in investment research and financial journalism, she is committed to producing accurate, accessible and insightful journalism that empowers readers to make well-informed financial decisions.
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