FADA vehicle depreciation: FADA seeks vehicle depreciation benefits for income tax payers in Budget 2024

Automotive dealers body FADA on Friday urged the government to introduce vehicle depreciation benefits for individual taxpayers, saying it will not only expand the taxpayer base but also ignite automobile demand. In its pre-budget wishlist, the Federation of Automobile Dealers Associations (FADA) also asked the finance ministry to reduce corporate tax for LLPs, proprietary, and partnership firms. “We urge the finance ministry to introduce the benefits of claiming depreciation on vehicles for individuals paying income tax,” FADA President Manish Raj Singhania said in a statement.

Allowing individuals to account for depreciation will not only increase the number of income tax filers but also ignite automobile demand, he reasoned.

Singhania also recommended reduction of corporate tax for LLPs, proprietary, and partnership firms.

“While the government has already reduced corporate tax to 25 per cent for private limited companies with a turnover of up to Rs 400 crore, extending this benefit to all LLPs, proprietary and partnership firms is crucial, as most traders within the auto dealership community fall into these categories,” he noted. FADA strongly appeals to the government to consider these two key measures in the upcoming budget to stimulate the automotive industry and broader economy, Singhania said. Finance Minister Nirmala Sitharaman is slated to present the Union Budget for 2024-25 on July 23.