ITR-3 filings surge 45% in 2025 as taxpayers shift to multi-income sources: Cleartax

• ITR-3 filings rose 45.4%, indicating more multi-income taxpayers in 2025
• 83.38 percent of ITR-3 filers reported capital gains, not just salary income
• Millennials comprise 51% of taxpayers, showing growth in younger filers.

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Tax filing trends in 2025 signal a sharp shift from traditional salary-based income to multi-income, with ITR-3 filings recording a massive 45.4 percent jump and ITR-2 filings rising by nearly 17 percent compared to last year, according to the annual report released by Cleartax.

A notable 83.38 percent, or 8 in 10, of all ITR-3 filings reported capital gains income, indicating the typical filer now has multiple income streams, not just salary, the data revealed.

ITR 2 is applicable for individuals and HUFs who have income from various sources but do not have any income under the head "Profits and Gains of Business or Profession". ITR 3 is for individuals and HUFs who have business income.

“The surge in multi-income filers shows that Indians are no longer relying on a single source of earnings. They are combining salary with capital gains, trading, and business income, and building portfolios that are more layered and resilient,” said Archit Gupta, Founder & CEO, Cleartax.

Overall, millennials comprised 51 percent of taxpayers, mostly in the 30–40 age group. The 25–35 year olds accounted for 42.3 percent of all ITR-3 filings in India. ITR-2 filings among the under-25 age category grew by around 18% year on year.

Crypto (VDA) remains niche asset class, not a mainstream investment

The data further indicated that half of all virtual digital asset (VDA) filers are also ITR-3 traders, driven largely by younger male taxpayers comprising 76.63 percent men, wherein 40 percent were in the 25-35 age bracket.

“Crypto, while still niche, also fits into this evolving financial profile. The finding suggests that crypto is emerging as an additional asset, added to an already diverse financial portfolio. This points to deliberate, high-risk traders rather than casual participants,” Cleartax said in a statement.

The data further suggests that brokers are increasingly becoming the first point of entry for ITR filing. It stated that with a 45.4 percent jump in ITR-3 filings and 83.38 percent overlap with capital gains, brokers are the route to wealth creation.

40-50 age group dominates income above Rs 30 lakh bracket

Meanwhile, salaried professionals earning more than Rs 30 lakh saw year-on-year growth of 23.34 percent in 2025 from 18.94 percent in 2024. The data stated that the majority of this cohort are filing their own taxes, taking charge of their finances.

Furthermore, the 40-50 age bracket represents India’s prime earning years, the data stated. A notable 38.1 percent, or 4 in 10, of salaried filers in this group sit in the income bracket of more than Rs 30 lakh. This represents a jump from 37.77 percent in 2024 and 37.76 percent in 2023.

Female participation is highest in the 30–35 age bracket, where women make up 26.8 percent of filers in this category. It dipped sharply to its lowest point at 19.5 percent in the high-earning 40–50 age group, Cleartax data revealed.