Disallowance u/s 43B for msme payment

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.