Arya News - The proportion of Indian taxpayers declaring gross income of more than Rs 50 lakh (about US$52,900) has nearly doubled over the past three assessment years.
NEW DELHI – India is witnessing a steady rise in the number of individuals reporting higher annual incomes. The proportion of self-filers declaring gross income of more than Rs 50 lakh has nearly doubled over the past three assessment years, according to a report by ClearTax.
The share of taxpayers in this income category climbed to 8% in Assessment Year (AY) 2026-27, compared with 4.5% in AY 2023-24. The proportion stood at 5.6% in AY 2024-25 and rose further to 7.3% in AY 2025-26, indicating an expanding pool of high-income earners.
The trend is also evident across the broader upper-income category. According to ClearTax’s annual report, ‘How India Filed in 2026’, the share of individual taxpayers reporting gross annual income above Rs 20 lakh increased to 30.5% in AY 2026-27 from 22.5% three years earlier. This suggests that nearly one in three individual self-filers now falls within this income bracket.
The report also points to a growing diversification of income sources, with more taxpayers earning money beyond their regular salaries. Nearly 47.3% of self-filers reported income from at least one non-salary source in AY 2026-27, a significant increase from 9.5% in AY 2022-23.
Such income streams include earnings from investments, businesses, freelance assignments and cryptocurrency-related activities, reflecting the changing nature of income generation among Indian taxpayers.
The number of individuals reporting multiple non-salary income streams has also increased considerably. The proportion of self-filers declaring income from at least two sources outside employment rose to 24.4% in AY 2026-27 from 3.5% in AY 2022-23.
Capital gains are emerging as another important contributor to reported income. The share of self-filers declaring capital gains rose to 41.7% in AY 2026-27, compared with 34.4% in AY 2025-26 and 25.5% in AY 2024-25.
ClearTax said the increase in higher-income taxpayers was accompanied by a rise in reported investment and business earnings, suggesting that individuals are increasingly relying on multiple income streams alongside their primary employment.