Explanation:
TDS stands for Tax Deducted at Source, a mechanism for collecting income tax. However, TDS is a *mode of collection* for direct taxes (like Income Tax), not a tax itself. S1 is correct, S2 is conceptually inaccurate as TDS is a collection method.
S1: In the absence of a partnership deed, a partner is entitled to a salary for participating in management. S2: In the absence of a partnership deed, interest on partner's loan is allowed at 6% p.a. Which statement(s) is/are correct?
Explanation:
The Partnership Act 1932 does not allow any partner to claim a salary for management participation if the deed is silent. However, it does allow interest on a partner's loan at 6% p.a. S1 is incorrect, S2 is correct.
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