Tax landscape sees rise in share of ITR-2 tribe

The number of ITR-2 filers rose from 4.75 million in AY21 to 12.17 million in AY25

- Gireesh Chandra Prasad

The Indian investor's hard turn to stocks, property and foreign assets after the pandemic shock has been much spoken about. Now, the numbers are showing up in the tax filings.

Individuals with diverse streams of income including rent from multiple properties, capital gains from shares or property or have foreign income or assets, but are not businessmen or professionals, are the fastest growing tribe of income tax payers, indicating the changing makeup of India's tax base.

Latest data from the income tax department show that after the pandemic, their share in total tax returns filed in a year has doubled to 14% in the assessment year (AY) 2024-25. In every assessment year since 2020-21, this class remained the fastest growing set of tax return filers, showing their deeper participation in investment activities.