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FREE TOOL FOR CAs & ACCOUNTANTSMSME 43B(h) Payment Checker: 15 / 45-Day Rule
MSME को 15 / 45 दिन में भुगतान: 43B(h) में कितनी राशि disallow होगी, तुरंत देखें
Find payments to micro and small suppliers that cross the 15 or 45-day limit, the amount to disallow under section 43B(h) for the year, and approximate MSMED interest. Free, runs in your browser, nothing is uploaded.
Bank Rate 5.75% as in October 2026; check the current rate on rbi.org.in. MSMED interest = 3 × Bank Rate, compounded monthly.
Bills from Udyam-registered micro / small suppliers
| Supplier | Bill / delivery date | Amount (Rs) | Agreed days (blank = 15, max 45) | Payment date (blank = unpaid) |
|---|
Paste many bills from Excel / BUSY
Copy five columns from Excel and paste below: Supplier, Bill date, Amount, Agreed days, Payment date. Dates as dd-mm-yyyy. In BUSY, a bill-wise outstanding or supplier ledger exported with Alt+E to Excel gives you these columns.
Section 43B(h) in short
- Applies to amounts payable to micro and small enterprises registered on Udyam (manufacturers and service providers). Medium enterprises are outside it, and suppliers whose Udyam registration shows trading only are generally treated as outside it.
- Time limit under section 15 of the MSMED Act: 15 days from acceptance of goods or services when there is no written agreement, or the agreed date but not more than 45 days.
- If payment is made after the limit, the expense is allowed only in the year it is actually paid. Paying before the return due date does not help: the 43B proviso does not apply to clause (h).
- Applies from FY 2023-24 onwards, to buyers who claim expenses on the accrual basis. Up to FY 2025-26 it is section 43B(h) of the Income-tax Act, 1961; from tax year 2026-27 the same rule is section 37(2)(g) of the Income-tax Act, 2025.
- Interest under section 16 of the MSMED Act (3 × Bank Rate, monthly compounding) is payable on late payments and is not deductible (section 23).
This checker is a working aid, not legal or tax advice. Acceptance date, written agreements, supplier category and the facts of each case decide the result: please confirm with the Act and your own judgement.
Do it from BUSY automatically
BharatLaxmi reads the BUSY or Tally ledger and works out bill-by-bill days and interest for every party. Ask us about a 43B(h) report for your clients' MSME suppliers.
43B(h) questions
What is the 45-day rule under section 43B(h)?
Payments to micro and small enterprises must be made within the time limit in section 15 of the MSMED Act: 15 days without a written agreement, or the agreed period up to 45 days. If paid later, the expense is deducted only in the year of actual payment.
If I pay the MSME supplier after 31 March but within 15 / 45 days, is the expense allowed?
Yes. If the payment is within the time limit, the expense is allowed in the year of purchase even if paid after the year end.
Does paying before the ITR due date save the deduction?
No. The proviso to section 43B that allows payment up to the return due date does not apply to clause (h).
Does 43B(h) apply to traders?
Purchases from suppliers registered on Udyam as micro or small manufacturers or service providers are covered. Suppliers registered only for trading are generally treated as outside the MSMED payment provisions. Check the supplier's Udyam certificate.
Is 43B(h) still in force under the Income-tax Act, 2025?
Yes. For FY 2025-26 and earlier years, section 43B(h) of the 1961 Act applies. From tax year 2026-27 the same rule continues as section 37(2)(g) of the Income-tax Act, 2025.
Is the MSMED interest deductible?
No. Section 23 of the MSMED Act says interest on delayed payment is not allowed as a deduction.