MSME Section 43B(h) Evaluator
Verify payment compliance limits (15/45 days), calculate statutory compounding interest, and check income tax disallowance risks instantly.
Tired of manually entering data in Tally?
Save hours every week. Import purchase invoices, sales bills, and bank statements directly into Tally in 1-click.
Only Micro (< ₹5Cr turnover) & Small (< ₹50Cr turnover) vendors trigger statutory penalty controls.
Increases payment deadline from 15 days to a maximum of 45 days.
Overdue by 5 Days
The statutory payment window of 45 days ended on 23 Aug 2026.
Statutory Interest Payable
₹419
3x RBI Bank Rate (20.25% p.a.) compounded monthly.
Corporate Tax Risk Impact
₹0
Expense deductible in the current financial year.
Statutory Disallowance Breakdown
Critical Auditing Caveats:
Permanent Tax Loss u/s 23
The ₹419 interest penalty cannot be claimed as a business expense. You pay ₹126 extra in corporate tax permanently.
No Expense Disallowance
Although payment was delayed, it occurred before the year-end (2027-03-31). The purchase expense remains fully deductible in the current year. (Only the interest penalty applies).
Don't let a missed payment date cost you a tax deduction.
We track every MSME supplier invoice, flag overdue payments before the deadline, and keep your Tally books clean — so you never lose an expense deduction.
Understanding Income Tax Section 43B(h)
Introduced to safeguard the liquidity of micro and small business units in India, Section 43B(h) of the Income Tax Act dictates that any sum payable to a Micro or Small enterprise must be cleared within statutory timelines. Failure to comply leads to heavy disallowance of purchase deductions, boosting corporate income tax liabilities temporarily or permanently.
The 15 & 45-Day Rules
Timelines depend strictly on the presence of a formal written agreement between the buyer and the MSME vendor:
- No Written Agreement: Payment must be cleared within 15 days from receipt of goods or services.
- With Written Agreement: Capped at the contract deadline, but can never exceed 45 days under any circumstance.
Penal Interest & Audit Consequences
If payments are delayed beyond the statutory limit, buyers are subjected to severe, non-negotiable statutory rules:
- 3x RBI Bank Rate Interest: Compound interest is payable to the vendor on a monthly rest basis for the delay period.
- Expense Disallowance: The paid interest is strictly non-deductible as business expenditure, and delayed purchases unpaid at year-end are added to taxable profits.
Frequently Asked Questions
Everything you need to know about TrulyInvoice for Tally Prime.
On clear digital PDF invoices, TrulyInvoice achieves approximately 96% field-level extraction accuracy based on internal benchmarks. Accuracy on handwritten or low-resolution scanned invoices is approximately 88-90%. Our review-first workflow ensures you catch and correct any AI omissions before they reach Tally.
TrulyInvoice differs from Suvit in three specific ways: (1) Bulk upload support — TrulyInvoice processes multi-file batches at once vs Suvit's 10-invoice cap. (2) Transparent monthly plans starting at ₹399/month for 1,000 pages (Lite), ₹599 for 2,000 pages (Plus), and Custom High Volume Plans vs Suvit's annual subscription model. (3) Multi-user team seating (up to 3 seats) sharing a single voucher quota. Suvit includes broader module coverage like GST filing that TrulyInvoice focuses on purely as a dedicated invoice-to-Tally engine.
Yes. TrulyInvoice's AI extracts data from handwritten invoices, PDFs, scanned images, and multi-page documents. It's trained on diverse Indian invoice formats including handwritten text.
Setup is typically quick: sign up, enable Port 9000 in Tally settings, install the connector, and test with a sample invoice.
TrulyInvoice supports common GST scenarios and can help map interstate (IGST) and intrastate (CGST+SGST) flows based on invoice and ledger data.
TrulyInvoice supports PDF invoices, JPG/PNG images, scanned documents, and handwritten invoices. It works with GST invoices, purchase bills, and sale invoices from any Indian vendor.
Yes. TrulyInvoice works with Tally running on your local computer. Enable Port 9000 in Tally settings (F1 > Settings > Connectivity) and the connector handles the rest. No cloud hosting required.
TrulyInvoice automatically creates missing ledgers and stock items in Tally. You can also create them manually in Tally and click Refresh to sync.
Yes. Invoices are encrypted in transit and at rest. The Tally sync happens on your computer — data never leaves your network during the sync process.
TrulyInvoice processes most invoices in 15-30 seconds from upload to Tally sync. This includes AI extraction, your review, and the actual sync. A single user can process 100+ invoices in under an hour with the review-first workflow.
TrulyInvoice includes a mandatory review step before syncing. You can edit any field the AI extracted. Additionally, mathematical validation checks if amount equals quantity multiplied by rate, flagging potential calculation errors automatically before they reach Tally.
No technical expertise required. Setup involves three simple steps: enable Port 9000 in Tally settings (F1 > Settings > Connectivity), download the connector app, and sign in. Most users complete setup in under 5 minutes. Phone and WhatsApp support is available if needed.
Yes. You can upload up to 20 invoices per batch upload (PDFs, scans, or photos). The system processes them sequentially with 99%+ accurate AI extraction, and you can review and sync them individually or in batches to Tally Prime.
TrulyInvoice creates both Purchase and Sales vouchers in Tally. It supports standard GST scenarios including intra-state (CGST+SGST) and inter-state (IGST) transactions. The system auto-maps GST rates and creates appropriate ledgers based on your invoice data.
Yes. TrulyInvoice includes a free 14-day trial with instant signup — no credit card required. Plans start at ₹399/month for Lite (1,000 pages) and ₹599/month for Plus (2,000 pages, 2 seats) after your trial ends. No hidden costs.
Stop Manual Voucher Entry.
TrulyInvoice automates your complete invoice workflow and syncs directly to Tally Prime.
No credit card · 14-day free trial
Upload Invoice
Drag & drop PDFs, scans, or photos.
AI Extraction
Line items, tax, and ledgers mapped.
1-Click Review
Verify extracted details on dashboard.
Direct Sync
Vouchers created instantly in Tally Prime.