Stock, House Owners Are Fastest-Growing I-T Payers

After the pandemic, share of ITR-2 filers in total tax returns has doubled to 14%

- 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 make-up of India's tax base.

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

In absolute terms, the number of income tax return 2 (ITR-2)—the form used for reporting individuals' income that is more than 50 lakh, which includes capital gains or rent from more than one house property or foreign income—has jumped from 4.75 million from the 2020-21 assessment year to 12.17 million in the 2024-25 assessment year, showed data from the department.