Interactive Tool • MSMED Act 2006 & Section 43B(h) (1961 • Act 2025)

Section 43B(h) & Act 2025 MSME Payment Countdown & Penal Interest Calculator

Calculate exact statutory payment deadlines under Section 15 of the MSMED Act 2006, assess compounding monthly penal interest under Section 16 at 3x RBI bank rate, and project corporate tax add-back disallowances under Section 43B(h) of the Income-tax Act, 1961 and the Income-tax Act, 2025 timely deduction rules.

Other Calculators: Tax Regime & Marginal Relief Working Capital & CCC Startup Runway Modeler Section 43B(h) Full Guide
Verify UDYAM certificate registration category
Gross invoice value including GST
15 days if verbal; max 45 days if written
Leave blank if currently unpaid
Section 16 MSMED mandates 3x Bank Rate

Statutory Architecture & Judicial Safeguards

1. Statutory Due Date Hierarchy (§ 15 MSMED)

If there is no written agreement, payment must be discharged within 15 days of acceptance. If there is a written agreement, payment can be extended up to 45 days. Crucially, any agreement stipulating credit terms exceeding 45 days is void ab initio under Section 15.

2. Section 23 MSMED Non-Deductibility

Penal interest payable under Section 16 (computed at 3x the RBI Bank Rate compounding monthly) cannot be claimed as an allowable business deduction under Section 23 of the MSMED Act, permanently increasing tax drag.

ICAI Code of Ethics Pull-Model Statutory Notice This interactive tool provides statutory guidance under the MSMED Act, 2006 and Section 43B(h) of the Income-tax Act, 1961. It operates 100% locally in your browser with zero data storage under the DPDP Act 2023.