Gift item

Taxation in hands of donee:
Section 56(2)(x) i.e. IOS. 8 Lakh.*

* It is assumed that transaction of gift does not fall under proviso to section 56(2)(x) specially it is not gifted on the occassion of marriage of donee.

Sale of Property.
Sec 49(1) COA of previous owner shall become COA in hands of Donee.
Period of holding of previous owner shall be counted for the purpose of Second proviso to section 48 i.e. indexation and section 2(42A) i.e. Period of holding ( inspite of words 'it is first held by assessee' , as there are many decisions of hon'ble courts).

Taxation in hands of donor.
Transaction does not avout to transfer as per section 47.

Thanks.