India has witnessed a sharp increase in the number of individuals declaring annual incomes exceeding Rs 1 crore, even as the overall growth in income-tax return filings remains subdued. The trend points to a growing concentration of reported income among higher earners and improved compliance at the top end of the tax base.
Data available from the Income Tax Department's e-filing portal shows that the count of crorepati taxpayers rose by nearly 22% in FY26, while the total number of income-tax returns filed increased by only around 1% over the same period.
The deadline for filing income-tax returns for AY 2025-26 was December 31, 2025, although taxpayers can still submit updated returns up to March 31, 2030.
Limited Expansion in Taxpayer Base
Between April 1 and December 31, 2025, over 9 crore income tax returns were filed, compared with 8.92 crore during the corresponding period in FY25. This translates into a modest growth of about 1.22%, indicating that the overall expansion of the taxpayer base has slowed.
The figures include e-returns filed for various assessment years, though filings are largely concentrated in the current year.
Higher Income Slabs Show Strong Momentum
While the number of filers in the lower income bracket of up to Rs 5 lakh has declined, every income slab above Rs 5 lakh has recorded double-digit growth.
The strongest momentum has been observed in the four highest income categories, ranging from Rs 50 lakh to above Rs 10 crore, each of which expanded by more than 20%. The fastest growth was seen in the topmost income bracket, underscoring the widening gap between high-income earners and the rest of the tax base.
Compliance and Transparency Driving Growth
Tax experts believe the surge reflects a combination of strong income growth at the top end and improved tax compliance. According to experts, higher wages, stronger bonus payouts and improved profitability in businesses have contributed to higher reported incomes.
At the same time, stricter reporting norms, increased use of data analytics and deeper integration of AIS, TDS and TCS data have made under-reporting more difficult. Experts say this has resulted in better identification and disclosure of high-value incomes rather than an abrupt rise in newly created wealth.
Indicator of Structural Change
The broad-based expansion across higher income brackets is being seen as a sign of a maturing tax administration and increasing formalisation of incomes. Rising urban earnings, improved business performance and technology-driven enforcement are reshaping India's direct tax landscape, with higher-income taxpayers forming a growing share of reported incomes.
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