Partners salary from partnership firm

Ans. 1,00,000

Paid by firm 6 lakh. Allowed 1 lakh. Disallowed 5 lakh.

Since the disallowed remuneration has suffered tax in the hands of the firm, the same will not be taxed in the hands of the partner.

Proviso to Sec. 28(v) of IT Act

Provided that where any interest, salary, bonus, commission or remuneration, by whatever name called, or any part thereof has not been allowed to be deducted under clause (b) of section 40, the income under this clause shall be adjusted to the extent of the amount not so allowed to be deducted.

As per your opinion in this case Rs 100000 is taxable right?

In my view Section 40(b) talks about disallowability of expense in the hands of the firm. Im not worried about the firm. Im worried about the partner.

My query is does Section 28(v) addresses the income portion in the hands of the partner. If so do we need to take the whole amount received by the partner as income or else any adjustment is required as mentioned above.