Tax planning for property ltcg exemption

Hello,

 

A father intends to sell an old property(purchased in 1981) and distribute the sale proceeds equally as gift among 5 family members. For efficient tax planning, he intends to gift an equal share of the property to all 5 family members before selling it by including them as co-owners of property , and sell it soon after so that each gets 1/5th of sale proceeds directly. Here are my questions :

 

1) Will the sale proceeds be treated as LTCG in the hands of all 5 family members individually although the property will be sold soon after including them as co-owners (Original holding period is more than 3 years in the hands of father)?

 

2) If yes, can all 5 members individually use sec 54EC limit of 50 lakhs to invest in LTCG bonds like REC/NHAI or use section 54 individually to invest in different properties and claim LTCG exemption?

 

Appreciate any opinion on this tax plan.

 

Thanks