Indian’s Shift from Salary Earners to Multi-Income Taxpayers as number of ITR-3 filers increase

India’s taxpayers are no longer relying on just one steady salary. Earlier, most people earned mainly from a monthly job, so they filed very basic tax forms. Now, more people are earning money from multiple sources at the same time. Because their income is more varied and complex, they are filing more detailed tax returns. This shows that the way Indians earn money is changing, and the tax system is seeing a shift from only salary earners to people with mixed and flexible income streams.

This shift is clearly visible in the changing pattern of income tax return (ITR) filings. Usually a group of salaried taxpayers filed a form such as ITR-1, which shows dependence on fixed monthly income.

Growth of ITR-3 Filing

Data of ITR-3 filing shows that filings surged 45% in 2025. However, ITR-2 filings used by salaried individuals with capital gains or various income sources grew 17%, which shows how investing has become mainstream for a widening base of taxpayers.

ITR-3 is for individuals and Hindu Undivided Families (HUFs) who earn income from a business or profession. It is also described as a comprehensive return form and it allows taxpayers to report several streams of income in one place.

You must file ITR-3 if your earnings include profits from:

• A Proprietary business
• Professional practice
• Remuneration as a partner in a firm, Income from more than one house property
• Capital gains
• Income from other sources

Change in Trend: New Age Profile Of Taxpayers

A Big change in this trend is the age of new taxpayers. People between 25 to 35 age  now make up more than 42% of people filing ITR-3, making them the biggest group handling complicated tax returns. Unlike earlier generations, who usually spent their early working years in steady jobs and focused on saving money, today’s young professionals start investing much earlier. Many of them begin their careers already trading in stocks, derivatives, and other investments.

These days, many working professionals don’t rely on just one source of income. They earn a regular salary for stability, run a business or side hustle to grow their earnings, and invest money to build wealth over time. This mix is quickly becoming normal, not rare. More than 83% of people who file ITR-3 report earning money from both business activities and investments. Which shows that having multiple income streams is now the new standard for financial security and growth.