How will income be taxed in this case?

In cae of partnership business, the income of the partners is taxed under the Profits & Gains from Business & Profession.  this is because partners are not employees of teh partners, they are carrying on mutually the business by themselves on behalf of the partnership firm.

If the partners incur any expenditure on behalf of the firm such as say Land as pointed in your questin, then this will be shown as loan payable to the partner and will be recorded as an purchase.  However if the land is purchased from the funds of the partnershp business and not by the partner(s) individually yhen it will be shown as a Purchase and current liability for sundry creditor will be created.

Now in every partnership deed it is mentioend that the partners interst on their capitals and would receive remuneration from the parnership firm.  The remuneration paid by the p'ship firm to the partners will be considered as an income from business of the partners & the firm can claim deduction for tax subject to the limits specified u/s 40(b). Same way interst earned by the partners on theie capital accounts will be taxable in thier hands & the firm can claim deduction to the limits specified.  so whatever firm pays to the partners subject to the clauses mentioend in the p'shp deed will be taxed in teh hands of partners.

However the tax slabs for salaried individuals and the partners would be the same and they can deduction u/s 80C from their taxable income.

FOR PARTNER SHIP BUSINESS THERE IS NO BASIC EXEMPTION LIMIT,INCOME TAX RATE IS 30.09% INCLUDING EC AND SHEC AND THE SHARE RECEIVED BY THE PARTNER AFTER POST TAX OF FIRM IS EXEMPT.

One is required to look at the partnership deed and compute the income received by each partner whether by way of remuneration, commission, interest, or specific fees.