R owns self- acquired vacant land of 2400 sft purchased 30 years back. Recently he executed a settlement deed in favour of his wife S and elder brother N for equal share without any consideration.
N also owns an old house in another place and his wife & 2 sons are the legal heirs.
Now N due to his age and health wants to his execute a settlement deed in favour of his younger son P for his share of the land property without any consideration.
Subsequently, if the land is sold jointly by S and P, and P invests his share of sale proceeds for a joint construction of a new apartment after demolishing the old house of his father (in which he is a joint legal heir) –
- What is the CGT implication for N in the current year?
- Will it be treated as Short Term or Long Term gain for P?
- Any other implications