How to Save Capital Gain tax?

Amor Y (Employed) (28 Points)

30 December 2010  

Please help.

My mother acquired land via WILL and  want to sell it, but wants to gift it to her 3 sons and then sell it so that the Capital gain tax liability is split i.e all 4 can theb benefit from the capital gain exemption under various different sec54.

Is there any restriction on the duration when the gift and then the sale of the property needs to be separated apart? Or there is no such restriction.? As she is planning to gift it and then sell it immediately the next month.

Can the AO  invalidate the gift  by stating that the gift was done with the intention to save capital gain tax ?

Is there any other way through which my mother can sell the land and end up paying a lot of CGT as the gain arise is quite substaintial amount.

Any helpfull suggestion would be great.