FADA Urges Vehicle Depreciation Benefits for Individual Taxpayers Ahead of Union Budget 2024-25

The Federation of Automobile Dealers Associations (FADA) has called on the government to implement vehicle depreciation benefits for individual taxpayers, emphasizing that this move could expand the taxpayer base and boost automobile demand.

In its pre-budget wishlist, FADA also requested the finance ministry to reduce corporate tax rates for Limited Liability Partnerships (LLPs), proprietorships, and partnership firms.

FADA President stated, “We urge the finance ministry to allow individuals to claim depreciation on vehicles for income tax purposes.” He explained that enabling individuals to account for depreciation would not only increase the number of income tax filers but also stimulate demand for automobiles.

Additionally, FADA recommended lowering corporate tax for LLPs, proprietorships, and partnership firms. Although the government has already reduced corporate tax to 25% for private limited companies with a turnover of up to Rs 400 crore, extending this benefit to all LLPs and partnership firms is essential, as many auto dealers fall within these categories.

FADA strongly appeals to the government to consider these two key measures in the upcoming budget to invigorate the automotive industry and the broader economy.

Finance Minister Nirmala Sitharaman is set to present the Union Budget for 2024-25 on July 23.