Exemption under section 54 of income tax act

Dear Member/Expert,

One of my client sold recently her ¼th share of Property along with ¾th share of her 3 brothers to her Son and Daughter in Law (Jointly). Consideration received for above said transaction in the form of cheuqe and bank loan. The said property was received through will by father in 2006. The property was actually purchased by her father in Oct, 2003 .Now my quarry is:-

1. Whether my client is liable to pay Long term Capital gain on said transaction?
2. If loan repay by her son out of her contribution will differ tax liability?

Thanks in advance

Manoj Kr Karna