Income below 12L, Form 121 submitted, sudden property sell caused LTCG

Income Tax Act 1961 Income from Capital Gains
2

Hey @Ramesh_Saraf,

Selling the property will not create any issue with Form 121. That form is only a declaration for lower or nil TDS on certain incomes like bank interest.

However, if you sell the property and earn LTCG of ₹7 lakh, that capital gain will become taxable income and must be reported in your ITR.

Hope this helps!