The number of taxpayers declaring very high incomes in India is rising rapidly. According to data presented by the Ministry of Finance in Parliament, 576 people reported a gross total income of Rs 100 crore or more in their income tax returns for Assessment Year 2025-26. This is the highest figure recorded in the last five assessment years.
Let us understand the rise in India’s high-income taxpayers and what this trend reveals about the country’s income levels, tax compliance, and economic inequality.
Number Increased From 142 to 576 in Five Years
In Assessment Year 2021-22, only 142 people had declared an annual income of Rs 100 crore or more. In Assessment Year 2022-23, this number more than doubled to 301. It then declined slightly to 284 in Assessment Year 2023-24.
The trend strengthened again over the next two years. In Assessment Year 2024-25, the number rose to 415, and in Assessment Year 2025-26, it increased further to 576. This means the number of taxpayers reporting incomes of Rs 100 crore or more has grown more than fourfold in five years. The jump from 142 to 576 represents an increase of more than 300%.
These figures indicate that despite a temporary dip in one year, the long-term trend has remained upward. The pace of growth has been particularly strong over the last two assessment years.
Big Difference Between Rs 100 Crore Income and Being a Billionaire
The question raised in Parliament was about the increasing number of billionaires in India. In response, Minister of State for Finance Pankaj Chaudhary stated that there is no statutory definition of ‘billionaire’ under either the Income Tax Act, 2025, or the earlier Income Tax Act, 1961.
As a result, the government presented the number of people declaring a gross total income of Rs 100 crore or more as a proxy for the country’s highest-income taxpayers. However, income and wealth are two different concepts. A person may earn more than Rs 100 crore in a year, but these figures do not reflect their total net worth.
The government also clarified that the Wealth Tax Act, 1957, was abolished with effect from 1 April 2016. Since then, it has not maintained aggregate data on taxpayers’ wealth. Therefore, income tax data cannot be used to estimate the actual number of billionaires or their total wealth.
Government’s Stand on Inequality Amid Rising Income
Alongside the rise in the number of high-income taxpayers, concerns about economic inequality were also raised. Instead of presenting a separate study, the Ministry of Finance referred to the findings of the Household Consumption Expenditure Survey 2023-24.
According to the survey, the Gini coefficient, which measures consumption inequality, declined from 0.266 to 0.237 in rural areas and from 0.314 to 0.284 in urban areas. The government cited this as evidence of a reduction in consumption inequality across both rural and urban India.
The ministry also highlighted labour market data. According to it, the unemployment rate for people aged 15 years and above declined from 3.6% in 2022 to 3.1% in 2025. It further stated, based on NITI Aayog estimates, that around 24.82 crore people moved out of multidimensional poverty between 2013-14 and 2022-23.
Wrapping Up
Along with these figures, the Income Tax Department informed Parliament that more than four crore income tax returns had already been filed for Assessment Year 2026-27. It also urged eligible taxpayers to file ITR-1 and ITR-2 before the 31 July deadline.
ITR-1, also known as the Sahaj form, is meant primarily for small and middle-income taxpayers. It can be filed by a resident individual with an annual income of up to Rs 50 lakh, earning income from salary, one house property, and agricultural income of up to Rs 5,000 a year.
Overall, the figure of 576 high-income taxpayers reflects the growing number of India’s highest earners. However, in the absence of official wealth data, it should not be interpreted as the actual number of billionaires or as a complete picture of wealth distribution in the country. Instead, it primarily reflects trends in declared income and tax compliance.
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