The number of individuals declaring annual income of over ₹1 crore has increased sharply in India, even as the overall base of income-tax filers has seen minimal expansion, underscoring a growing concentration of reported income at the upper end.
Data from the Income-Tax e-filing portal show that individuals declaring incomes above ₹1 crore rose by around 22 per cent in FY26, a striking jump given that the total number of returns filed grew by only about 1 per cent during the same period. December 31, 2025, was the deadline for filing income-tax returns for Assessment Year (AY) 2025-26, although updated returns can still be filed until March 31, 2030.
Data showed that during FY26, between April 1 and December 31, over 9 crore returns were filed compared with 8.92 crore during the corresponding period of FY25, indicating a modest growth of 1.22 per cent. Data for FY includes e-returns (excluding online rectifications) filed for various Assessment Years, but largely the current one.
Income shift
While the headline growth in total filers remains muted, the composition of income reported has shifted materially upward. The number of individuals filing returns with income up to ₹5 lakh has declined, but all six higher income slabs — from above ₹5 lakh to over ₹10 crore — have recorded double-digit growth.
The four highest brackets, ranging from ₹50 lakh to over ₹10 crore, have each recorded growth of more than 20 per cent, with the top income category registering the fastest increase.
Top-End Trends
Tax experts say the surge reflects a mix of stronger income growth at the top-end and improved reporting, rather than a statistical anomaly. An tax expert, attributed the trend to a broad-based increase in economic activity. “We are seeing tangible improvements in household earnings at the upper end, driven by wage growth, stronger bonus cycles and healthier business profitability,” he said.
Echoing the view, another tax expert said the roughly 21 per cent rise in crorepati filers despite only a 1 per cent increase in total returns highlights better capture of high incomes within the tax net. “Tighter reporting norms, wider use of data analytics, and greater transparency through AIS and TDS/TCS tracking have significantly curtailed under-reporting,” he said, adding that the surge likely reflects improved compliance rather than sudden creation of new wealth.
He said the consistent expansion across multiple high-income brackets points to a maturing tax system. “The data signals a genuine upward trend in prosperity and income generation, marked by rising urban incomes, stronger business performance and a compliance-driven expansion of the formal tax base,” he said.
