Computation of actual cost: adjustments for third party funding and input tax credits limit depreciable base.
Section 39 defines actual cost for assets used in business or profession as the assessee's cost reduced by amounts borne by another person, GST/input tax credits where claimed and allowed, excise/additional customs duty credits where claimed and allowed, and any subsidy, grant or reimbursement relatable to acquisition; it excludes payments made outside prescribed banking/online modes beyond the daily threshold and prescribes a formula to apportion non asset specific subsidies across assets.