when you sell the property you  have to pay long term capital gains tax . 

2) The calculation of the capital gain tax will depend on the holding period of the property. In the case of the sale of gifted property, the holding period starts from the time when the property was purchased by the person who gifted you the property (donor) and not from the time you received the gift.

NO

There is appreciation in property rates every year

so even if after one year of purchase the property is gifted then by the logic in your question the donor has to pay tax on the differential 

it makes no sense that the donor would transfer his property for free and at the same time also pay tax 

this would essentially stop anybody from gifting his or her property

In case of gift only applicable stamp duty and cess, if any, shall be payable by the donor. Except stamp duty no other amount on account of tax is payable.

Since the property is transferred to another person by a gift deed without receiving any consideration amount, then there's no question of any tax involved in it.

Therefore there is no necessity to pay long time capital gains tax for this transfer 

- When a property is received as a gift, it is not taxable for the receiver , and when the receiver of this gift of property sells it, capital gains on the sale are taxable .

Dear Client,

A gift deed is a transfer of property without any consideration. This means that the recipient of the property does not have to pay any tax on the gift. As a result, there is no long-term capital gains tax liability for the transfer.

It’s not liable for taxation unless you earn from that property