Salary isn't enough: 47% of Indians have a second source of income – Report

Indians are no longer solely dependent on their salaries. According to a recent report, 47% of taxpayers are also generating income through investments and trading—a trend that is particularly popular among the youth.

Amid rising inflation, managing household expenses on a single income has become increasingly difficult. Consequently, people in India are no longer relying exclusively on a job or salary; instead, they are diversifying their income streams through avenues such as stock market investments, trading, business ventures, freelancing, and cryptocurrency. These findings were highlighted in a recent report by ClearTax, titled "How India Filed in 2026."

The report reveals that for the assessment year 2026-27, approximately 47.3% of taxpayers reported at least one additional source of income beyond their salary—a significant jump from just 9.5% in the assessment year 2022-23.

What else does the report reveal?

The report highlights several other key trends. It notes that 62% of tax returns were filed using forms other than the standard ITR-1 (compared to 40% in 2024-25). Furthermore, 41.7% of individuals reported capital gains—profits earned from investments in stocks, mutual funds, or other assets—up from 25.5% two years ago.

Additionally, 75% of taxpayers under the age of 25 filed more complex ITR forms, an increase from 60% the previous year. Among those with an annual income between ₹5 lakh and ₹10 lakh, 49.6% also filed complex ITR forms. Meanwhile, 30.5% of women reported capital gains, compared to 26.1% in the previous year.

Increased Participation of Youth and Women

According to the report, the participation of young people in investment and trading is growing rapidly. However, 37% of these investors under the age of 25 have also incurred losses. Meanwhile, women are also showing greater interest in the stock market and other investment avenues. Notably, about 40% of taxpayers over the age of 60 have reported capital gains, indicating that individuals continue to generate income through investments even after retirement.