45-day rule checker for MSME payments
A buyer can claim a payment to a micro or small supplier as an expense this year only if they pay within the agreed days, at most 45, or within 15 days if nothing was agreed in writing. Find the last day for your bill.
The agreement says more than 45 days, but the law caps it at 45.
If the buyer pays after this, they can claim the expense only in the year they actually pay.
This applies to suppliers registered as micro or small enterprises on Udyam. It does not apply to medium enterprises.
Section 43B(h) of the Income-tax Act 1961, carried into Section 37(2)(g) of the Income-tax Act 2025, with the time limits of Section 15 of the MSMED Act 2006. This is a guide, not legal or tax advice.
Sources
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