India’s capital markets are undergoing a generational transformation, with Gen Z investors now taking centre stage. Data from Cleartax, reported by Business Insider, shows that Income Tax Return (ITR)-3 filings among investors under the age of 25 soared by more than 600 per cent in 2024, marking a dramatic rise in youthful participation.
The surge coincides with a boom in market activity. Nearly 37 million new demat accounts were added in FY 2023–24, and indicators suggest that FY 2024–25 is on track for even higher growth. Unlike older investors, the newest entrants are not just experimenting, they are committing capital at scale.
Beyond casual investing
Archit Gupta, Founder & CEO of Cleartax, highlighted the trend as a decisive shift in how India’s younger generation perceives wealth creation. “These young investors are committing significant capital, often as their first real foray into wealth creation. The enthusiasm is incredible, but it also comes with risk, as many are still learning how to navigate the markets,” Gupta noted.
Cleartax’s data reveals that sub-25 ITR-3 filers, while leading in growth, also reported some of the highest losses. In comparison, investors aged 30-35 demonstrated more measured risk-taking, reporting steadier returns. This reflects a familiar trajectory in financial behaviour: younger investors chase growth aggressively, while older age groups shift gradually towards income preservation.
The rapid entry of young Indians into capital markets signals both opportunity and risk. While enthusiasm remains high, it requires structured financial guidance. Gupta stressed that regulators, platforms, and advisors must step in to provide education and tools that can turn youthful zeal into sustainable financial discipline.
Retention trends are encouraging. ITR-3 filers in 2024 recorded a 91.6 per cent retention rate, with 2025 already showing 68 per cent. New users grew by 58 per cent year-on-year, underscoring the long-term potential of this segment. Once young Indians enter the market, they rarely step away. They simply need support in sharpening their strategies.
Tax filing deadlines for AY 2025–26
For Assessment Year (AY) 2025–26, the Income Tax Return deadline for individuals and non-audit taxpayers has been extended to 15 September 2025, from the usual 31 July cut-off.
31 October 2025 – Filing deadline for businesses requiring audits.
30 November 2025 – Deadline for entities with international transactions.
31 December 2025 – Final date for belated or revised returns under Section 139(5).
Missing the 15 September deadline can result in penalties of up to Rs 5,000, along with interest on outstanding tax liabilities. Refund delays are also common if returns are not filed on time. Importantly, no extension beyond 15 September has been announced.