For self-employed, Buy or subscribe a car?

In general for any asset, Which is more beneficial in terms of tax? Buying/subscribing?
Are there any limitations to show subscription amount as business expense?

Hello @bharath_kumar,

Depreciation is allowed on Fixed Assets owned by assessee under Income Tax Act, 1961 which is calculated based on the cost of asset as per the rates mentioned in the Income Tax Act, 1961 you can refer the method of depreciation as well as rates in the link below.

However, when you take assets on lease or hire-purchase, the entire cost of asset is not allowed as deduction in the form of depreciation but the lease rentals paid for the asset are allowed as deductible business expense. If the payments are made to a person who is relative then excess payment is disallowed under Section 40A(2).

For any general asset, you need to consider the cost, rate of depreciation vis-à-vis the lease rentals paid on the same to identify which of the option is beneficial to a particular case.

Hope it helps!