Gen Z sparks record growth in ITR-3 filings as young investors embrace stock market, shows data
Demat accounts increased by nearly 37 million in FY 2023–24, with early trends indicating continued acceleration in FY 2024–25. The most notable aspect of this growth is that it is being propelled by individuals under 25, who are actively participating in capital market activities and declaring relevant income via tax filings.
- Sep 13, 2025,
- Updated Sep 13, 2025 12:44 PM IST
India’s capital markets are experiencing a generational shift, and the numbers are telling a story far deeper than the headline figures. According to data from Cleartax, ITR-3 filings among investors under the age of 25 surged by more than 600 percent in 2024, signaling a new wave of youthful participation in the markets.
Demat accounts grew by nearly 37 million in FY 2023–24, and early indicators for FY 2024–25 suggest the momentum is only accelerating. Yet, what stands out most is who is driving this growth. The fastest increase in ITR-2 and ITR-3 filers—categories tied to capital gains and market activity—comes from Indians under 25, many of whom are college students or freshers just entering the workforce.
“This isn’t just casual investing,” Archit Gupta, Founder & CEO of Cleartax, wrote in a column. “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.”
Indeed, Cleartax’s data shows that while sub-25 ITR-3 filers are leading the growth charts, they also reported some of the highest losses. By contrast, investors in the 30–35 age bracket show steady growth in filings but far fewer losses, reflecting more experience and disciplined risk management. As investors reach their late 30s and 40s, many tend to shift toward safer, income-preserving investments, illustrating how financial behavior evolves with life stages.
Gupta emphasized the importance of guiding this generation. “India’s younger investors are no longer waiting until they’re settled to participate in markets. They see capital markets as a primary income stream and a vehicle for wealth creation. The challenge now is ensuring that this enthusiasm is channeled productively.”
Cleartax’s internal data further highlights the commitment of young investors: ITR-3 filers recorded the highest retention rate at 91.6 percent in 2024, and early 2025 figures already show 68 percent retention. New users in this segment grew 58 percent compared to the previous year, signaling that once young Indians enter the markets, they rarely step back—they just need the right guidance.
“This is an opportunity for India’s financial ecosystem—regulators, platforms, advisors—to provide education, tools, and tax-efficient strategies,” Gupta added. “If done correctly, this generation could become the backbone of India’s wealth creation story.”
The rise of young investors marks a turning point: India’s capital market boom now has a new face—ambitious, impatient, and determined to grow. Success will be measured not just in GDP numbers, but in the financial independence of millions who embraced the markets early and responsibly.
India’s capital markets are experiencing a generational shift, and the numbers are telling a story far deeper than the headline figures. According to data from Cleartax, ITR-3 filings among investors under the age of 25 surged by more than 600 percent in 2024, signaling a new wave of youthful participation in the markets.
Demat accounts grew by nearly 37 million in FY 2023–24, and early indicators for FY 2024–25 suggest the momentum is only accelerating. Yet, what stands out most is who is driving this growth. The fastest increase in ITR-2 and ITR-3 filers—categories tied to capital gains and market activity—comes from Indians under 25, many of whom are college students or freshers just entering the workforce.
“This isn’t just casual investing,” Archit Gupta, Founder & CEO of Cleartax, wrote in a column. “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.”
Indeed, Cleartax’s data shows that while sub-25 ITR-3 filers are leading the growth charts, they also reported some of the highest losses. By contrast, investors in the 30–35 age bracket show steady growth in filings but far fewer losses, reflecting more experience and disciplined risk management. As investors reach their late 30s and 40s, many tend to shift toward safer, income-preserving investments, illustrating how financial behavior evolves with life stages.
Gupta emphasized the importance of guiding this generation. “India’s younger investors are no longer waiting until they’re settled to participate in markets. They see capital markets as a primary income stream and a vehicle for wealth creation. The challenge now is ensuring that this enthusiasm is channeled productively.”
Cleartax’s internal data further highlights the commitment of young investors: ITR-3 filers recorded the highest retention rate at 91.6 percent in 2024, and early 2025 figures already show 68 percent retention. New users in this segment grew 58 percent compared to the previous year, signaling that once young Indians enter the markets, they rarely step back—they just need the right guidance.
“This is an opportunity for India’s financial ecosystem—regulators, platforms, advisors—to provide education, tools, and tax-efficient strategies,” Gupta added. “If done correctly, this generation could become the backbone of India’s wealth creation story.”
The rise of young investors marks a turning point: India’s capital market boom now has a new face—ambitious, impatient, and determined to grow. Success will be measured not just in GDP numbers, but in the financial independence of millions who embraced the markets early and responsibly.