Bill of msme dated 1.1.24
Payment made on 30.4.24
As payment to msme not made within 45 days is disallowed u/s 43B. It can be claimed only in year of Payment. But as we pay before filing ITR. Can we take deduction in A.Y 24-25 or we have take in only A.Y 25-26?
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Disallowance u/s 43B for msme payment
Replies (3)
Quick Summary
Only in the year 25.26
You can claim in AY 25-26
Section 43B(h) applies only to payments to suppliers who are registered as MSMEs on the Udyam portal, if your vendor does not have a Udyam number, the 45-day rule does not apply (though this is not a reason to delay payment). For payments that crossed 45 days and were not paid by March 31, 2026, the expense is disallowed for FY 2025-26 and will be allowed in the year of actual payment. Keep a payment trail: bank statements, date of invoice acceptance, and confirmation that the supplier is Udyam-registered. If you have significant MSME payables outstanding at year-end, your CA needs to flag this in the tax computation before filing ITR.
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