Depreciation benefits will ignite auto demand: FADA
Says it’ll also widen the taxpayer base as well
image for illustrative purpose
We urge the Finance Ministry to introduce the benefits of claiming depreciation on vehicles for individuals paying income tax - Manish Raj Singhania, president, FADA
Tax Net
- Current corporate tax at 25% on turnover upto Rs400 cr
- FADA wants this benefit to all LLPs, proprietary partnership firs
New Delhi: 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 Rs400 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.
