This is how Indians earned money in 2025
What's the story
India is witnessing a shift from a salary-centric economy to one with diverse income streams, according to ClearTax's "How India Filed in 2025" report. The study highlights a jump in taxpayers reporting multiple sources of income such as business, trading, investments, and digital assets. The trend is especially prominent among younger generations like Millennials and Gen Z who are embracing new investment avenues.
Filing trends
Rise in ITR-2 and ITR-3 filings
The report shows a 45.4% increase in ITR-3 filings, which cover business and trading income, and a 17% rise in ITR-2 filings that cover capital gains and investment income. This surge indicates that tax returns are now capturing a wider range of earnings beyond traditional salaries. Millennials aged 25-35 account for the largest share of taxpayers with business or trading income at 42.3%.
Young investors
Gen Z's adoption of investment income
There's an 18% jump in ITR-2 filings among taxpayers under 25. This shows that younger Indians are reporting investment income along with salary or internship earnings. Among salaried taxpayers, 38.1% of people aged 40-50 reported annual incomes above ₹30 lakh, marking the prime earning decade in India's salaried workforce.
Crypto trends
Cryptocurrency's emerging role in income diversification
The report also highlights the growing importance of cryptocurrency as an income source. Although still niche, 76.6% of Virtual Digital Asset (VDA) filers were men, with nearly 40% aged between 25 and 35. About half these young crypto investors also filed ITR-3, indicating that digital assets are becoming a part of broader financial portfolios.