Form 121 in case of income below 4 lakhs, plus LTCG of 3 lakhs

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director
21 Points Posted on 12 May 2026

My wife's annual income is below 4 lakhs, so thinking of submitting form 121 with Bank,

Now, in case she want to sell shares there will be LTCG of another 3 lakhs 

Can she submit form 121 with Bank

As far as I know, one can submit form 121 if income tax liability is zero.

My question is whether above-mentioned zero tax liability is inclusive of LTCG .

Thanks 

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On 12 May 2026 at 10:55 Report
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Finance Compliance Consultant
1126 Points Posted on 12 May 2026

Form 121 (which replaces 15G/H) requires your total tax liability to be zero. Since the 3 lakhs in LTCG will likely trigger a tax payment, she is ineligible to submit the form. It is better to let TDS be deducted and claim a refund later via her tax return.

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On 12 May 2026 at 11:29

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