Gift deed made to two donees, what’s LTCG implication if property sold later

Dear Client,
If A transfers property to B and C as a gift and jointly owns the property in equal share, one half each, and later desire to sell the property in order to acquire two different residential immovable properties then the provisions of selling the inherited residential immovable property to reduce the burden of capital gain tax under the Income Tax Act, 1961 may be applicable. However, Section 54 is an allowance for exemptions on capital gains, where the proceeds realized from such considerations are invested in other residential buildings one year before, or two years afterward.

Every co-owner may have the exemptions within the corresponding share of the capital gains which has to be reinvested in the meantime not having more than one residential property at the time of reinvestment. Also Section 54F, provides similar kind of exemptions in respect of long term capital assets. In this case, B and C must make sure that they meet these provisions and seek the assistance of a lawyer to advise them on how to best take advantage of the law in their particular circumstances.
Hope this information helps to resolve your dispute.