More than one in three Indian investors under 25 who reported capital gains or losses in assessment year (AY) 2026-27 booked a loss, according to tax-filing platform ClearTax’s annual report, How India Filed in 2026, released on 2 November 2026. At 37%, the loss rate is the highest of any age group and falls steadily with age to 21% among filers above 60.
The data, drawn from returns filed on ClearTax, adds to a growing body of evidence on how app-led investing is changing the finances of young Indians. Fintech platforms have opened up equities, derivatives and even US stocks for Indian retail investors, and first-time investors are arriving with smaller portfolios and less experience.
What the ClearTax Report Shows on Young Investors
Among self-filers who reported capital gains or losses, the share reporting a loss was:
- Under 25: 37%
- 25 to 30: 29%
- 30 to 50: 25% to 26%
- 50 to 60: 24%
- Above 60: 21%
Losses also tracked income. About 35% of filers with gross income below ₹1 lakh reported a capital loss, against 19% of those earning above ₹50 lakh, the report said.
Losses Are Not Driving Young Investors Away
The losses do not appear to be pushing young people out of the market. Among first-time filers under 25 using ClearTax’s expert-assisted plans, 82% filed complex returns in AY 2026-27, up from 76% a year earlier and 68% in AY 2024-25. The share filing ITR-3, the form for business or professional income that also covers active traders, rose from 18% to 34% over two years.
Under-25 filers were also the only age group to show significant growth in ITR-4, used under the presumptive taxation scheme, which rose from 8.9% to 15.2% of their filings. ClearTax linked this to freelancing, consulting and small digital ventures. The official Income Tax Department e-filing portal lists which ITR form applies to each income type.
Why It Matters for India’s Wealthtech Platforms
The wider report shows how quickly investment income is spreading. The share of self-filers reporting capital gains rose to 41.7% in AY 2026-27 from 25.5% two years earlier, and 47.3% reported at least one income source outside their job, up from 9.5% in AY 2022-23.
For brokers and wealthtech firms, the numbers point to demand for guidance, not just access. Platforms such as PowerUp Money, which raised $10 million to build an AI wealth manager, are betting on that gap, while brokers like Zerodha have been reducing their dependence on broking revenue as trading volumes shift.
“From young professionals participating in equity markets and taking up independent work to households diversifying their investments, wealth creation is becoming a more active and widespread pursuit,” said Archit Gupta, Founder and CEO of ClearTax. He added that access to the right financial and tax guidance will become increasingly important.
Key Takeaways
- 37% of under-25 filers with capital gains or losses reported a loss in AY 2026-27, the highest of any age group.
- 82% of first-time under-25 filers on ClearTax’s assisted plans filed complex returns, up from 68% two years ago.
- 41.7% of self-filers reported capital gains, showing how fast market investing is spreading.
FAQ
What is the ClearTax How India Filed in 2026 report?
It is ClearTax’s annual analysis of income tax returns filed on its platform for AY 2026-27, covering income sources, ITR forms and capital gains by age and income group.
Which age group reported the most capital losses?
Filers under 25 did, with 37% of those reporting capital gains or losses showing a net loss, compared with 21% of filers above 60.
Also read: Raise Launches Millions App for Gen Z and First-Time Investors
Featured image: Archit Gupta, Founder and CEO, ClearTax. Photo: Khaleej Times.
