My 18-year-old son earned ₹1 lakh intraday, ₹4.5 lakh STCG. Will these be clubbed with my income?

Sundeep from Hisar recently shared with us that his son, who is still studying, has made an intraday gain of ₹1 lakh and ₹4.5 lakh short-term capital gains from share trading. As his son turned 18 years old on January 30, 2025, Sundeep is now having the following doubts:

• Should he file an ITR with his son's PAN card separately, or
• Whether his son's trading income be clubbed with his income?

His son has also made an income of ₹30,000 from a fixed deposit. And currently, he is a student living in a PG away from Hisar. Sundeep wants to know if he can also get HRA for the rent paid to PG.

"My son, who is studying, has an STCG of ₹4,50,000 and an intraday gain of ₹100,000. He has completed his 18th birthday on 30 January 2025. Now, should I file a separate ITR under his PAN CARD, or will his income be included in my income? He also has an income of ₹ 30,000 from an FD. He is studying outside home hometown and also paying PG rent. Can he also get HRA for the same?" Sundeep wrote in this mail.

The taxpayer’s son, having completed 18 years of age on 30 January 2025, is considered a major for income tax purposes for the financial year 2024–25 (assessment year 2025–26).

Consequently, the clubbing provisions under section 64(1A) of the Income-tax Act, which apply only to minors, are not applicable in this case.

Accordingly, the income earned by the son shall not be clubbed with that of the parent and must be reported under a separate return of income filed in his name and PAN.

Since he does not have a salaried income and does not receive House Rent Allowance (HRA) as part of any salary structure, he is not eligible to claim any exemption in respect of PG rent paid, despite residing away from his hometown for educational purposes.