Capital gain tax on sale of gifted land

Querist : Anonymous (Querist) 25 August 2018 This query is : Resolved
R (aged 71) has a vacant plot measuring 2400 ft in West Chennai which was purchased in 1975.
N (79) his elder brother has a residential property of 2600 sft with built up area of about 1500 sft in East Chennai. It was purchased in 1974 and 50% of the property was settled in favour of his wife L in 2015. They want to demolish the house and construct apartment building there.
Now, if R executes a gift deed of his vacant plot to N and afterwards N sells it and reinvests the proceeds for construction of 4 flats in the premises jointly owned by N and L what will be the implications of Capital Gain Tax for N.
Whether N will get exemption of the construction cost of all the 4 flats or for one flat only?
Whether Settlement deed is preferable to Gift Deed?
What will be the obligations of R as donor under IT Act?
What are the other charges /expenses that may be involved?

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