Rapid Growth of High-Income Salaried Class in India
Significant Increase in High-Income Taxpayers
New Delhi, Jan 7: A recent report indicates that India's high-income salaried demographic is expanding swiftly, with the proportion of salaried taxpayers earning over Rs 30 lakh annually rising from 18.49% in 2024 to 23.34% in 2025.
This trend signifies notable upward mobility among the middle and upper-middle classes, as revealed by data from ClearTax.
The insights are part of ClearTax’s yearly analysis titled ‘How India Filed in 2025’, which scrutinizes millions of income tax returns to gain insights into the earning, investing, and wealth-building behaviors of Indians.
The report illustrates that peak earning years are evident, with nearly 38% of salaried taxpayers aged between 40 and 50 earning more than Rs 30 lakh per year, marking this group as the highest earners and tax contributors in the nation.
This pattern emphasizes that experience and career stability are translating into increased salaries during mid-career stages.
Moreover, the report highlights a significant transformation in income generation among Indians, indicating a shift away from reliance solely on salaries.
The notable increase in ITR-3 and ITR-2 filings suggests that more individuals are generating income through business ventures, trading, and investments, reflecting a transition towards diversified income sources.
Investing has evolved into a common financial practice rather than remaining a specialized activity. A substantial number of taxpayers filing ITR-3 reported capital gains, indicating that equity markets and trading have become integral to many Indians' financial strategies.
Younger Indians are entering the job market with a proactive investment approach. Tax filings among individuals under 25 have surged, with many first-time filers already reporting capital gains.
Millennials aged 25 to 35 are significantly influencing this trend, as they represent the largest segment of complex tax filings, driven by active investment, trading, and multiple income streams.
The report also notes that while crypto assets are gaining attention, they are still viewed as high-risk additions rather than mainstream investments.