File Your Income Tax Return Before 31st July 2024.
The Ministry of Corporate Affairs via notice on January 22, 2021 inserted an explanation under Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014. This notification states that all companies, except the government company, are under an obligation to submit form DPT-3 on a yearly basis for transactions that are not deems deposits, i.e. exempted deposits. In this article, we’ll discuss about Applicability and Filing of Form DPT-3 in brief.
Before we move to the Applicability and Filing of Form DPT-3, let’s understand about what is actually a Form DPT-3 is?
Form DPT-3
The DPT–3 form is the statement return that needs to be filed by any company that has taken deposits under section 73 of the Companies Act, 2013 (the “Act”) and the rules established thereunder. In general, any sum taken from the general public (including members) is considered a public deposit.
DPT-3 is a return of deposits or transactions not deemed deposits or both, that every company other than the government company must report. The goal of this form is to submit information regarding the loan or money received by the company to the Registrar of Companies (‘ROC’).
Concept of Deposit and Exempted Deposit
For understanding the applicability of Form DPT- 3, we should have understanding of Deposit and Exempted Deposit. Let us understand these concepts in detail.
Deposit:
According to Section 2 (31) of the Companies Act, 2013, a “deposit” is any money received by a business as a deposit, loan, or in any other form, but does not include such categories of amount as may be defined in consultation with the Reserve Bank of India.
Any receipt of money in the form of a deposit, loan, or other transaction other than those specified in Rule 2(1) (c) of the Companies (Acceptance of Deposits) Rules, 2014.
The above definition is all-inclusive, which indicates that any sum received by the company in any form, whether as a loan, advance, or otherwise, shall be regarded a deposit, save for transactions prescribed by the Central Government with the consultation of the Reserve Bank of India.
Exempted Deposit
Loans or advances obtained by the company from Directors, Shareholders, Promoters, or Banks and Financial Institutions in accordance with Section 2 (1) (c) of the Companies (Acceptance of Deposits) Rules, 2014. Or in other words, any monetary receipt as defined in Rule 2(1) (c) of the Companies (Acceptance of Deposits) Rules, 2014 is an exempted deposit.
Applicability of Form DPT-3
Filling out form DPT-3 is required when the company receives money in whatever manner, whether it is classified Deposits or Exempted-Deposits.
This is because money received in any form is classified as Deposits or Exempted-Deposits, and the filing of Form DPT-3 are required for both Deposits and Exempted-Deposits. The exempted deposit category includes money received in the form of advances from customers, advances against immovable property, and more.
Who is not required to file a return?
Except for government entities, every company is required to file this report. The following companies are likewise excluded under Rule 1(3) of the Companies (Acceptance of Deposits) Rules, 2014:
- A Banking company
- Non-Banking Financial Company
- A National Home Bank (NHB) registered, housing finance company
- Any other entity that has informed under proviso to subsection (1) of Section 73 of the Act.
Filing of Form DPT-3
The DPT-3 form may be split into two varieties:
- One Time Return
- Annual Return
Documents necessary for Submission while filing Form DPT-3
There is the need for the following documents while submitting the Form DPT-3:
- Auditors’ certification
- A copy of the Trust Deed
- Deposit Insurance contract, if applicable and indicated in the form
- Copy of the instrument producing the charge
- Depositors’ list – Separate lists of deposits that have matured and cheques that have been issued but have not yet been cleared.
- Specifics about liquid assets
- Optional attachment
Other significant information for Filing of Form DPT-3
The following information required for filing up of Form DPT -3 is mentioned below:
| Sr. No. | Heads | Information |
| 1. | Tenure for filing the return | The one-time return must be filed for the period beginning April 1, 2014, and ending March 31, 2019. As a result, any receipts collected during this time and still outstanding as of March 31, 2019 required to be declared. The annual return covers the fiscal year beginning April 1, 2019 and ending March 31, 2020. This return will reflect all outstanding amounts as of the date. |
| 2. | Due date for filing the return | The yearly return is due on the 30th of June of each year. For example, the deadline for DPT-03 for fiscal year 2021-22 is June 30, 2022. |
| 3. | Information to furnish while submitting the form | The information must be provided include the company’s Corporate Identification Number (CIN), email ID, the company’s objects, the company’s net worth, any charges, the total amount outstanding, along with credit rating. |
| 4. | Filing Fees | Fees must be paid in accord with the Companies (Registration Offices and Fees) Rules. |
Transactions that are not recognized as deposits
The following are the transactions that are not recognized as deposits:
- Any sum received from or guaranteed by the government, foreign government/foreign bank.
- Sum obtained as a loan or facility from any public financial institution, insurance company, or bank
- Any sum received by a company from another company.
- Securities subscription and call in advance.
- Further, any sum received from the company’s director or a family of the company’s director who held the positions at the time of lending.
- Further, any money collected by the company from an employee that does not exceed his yearly income as specified in his work contract, such as a non-interest bearing security deposit.
- Any sum received as an advance for the supply of goods or provision of services or as a security deposit for the fulfilment of the contract for the supply of goods or provision of services in the course of or for the purposes of the company’s activity.
- A start-up company receiving Rs 25 lakh or more in the form of a convertible note in a single tranche.
- Amount raised by issuing secured bonds or debentures with first charge, non-convertible debentures with no charge on the company’s assets.
- Promoters’ unsecured loans
- Moreover, any sum received by the company from Nidhi Company or by subscription in respect of chit under the Chit Funds Act, 1982.
- Further, any sum received by the company via a SEBI-registered collective investment plan, alternate investment funds, or mutual funds.
- Furthermore, any additional money that does not qualify as a deposit under Rule 2(1) (c).
Penalties for non-filing of Form DPT-3
If the company does not fulfil DPT-3 criteria and continues to take deposits, it will suffer the following consequences:
- Under Section 73: a penalty of at least Rs. 1 crore or twice the amount of deposits, whichever is less, may imposed, with a maximum penalty of Rs. 10 crores.
- For each officer in default, imprisonment for up to 7 years and a fine of not less than Rs. 25 lakhs, which may extend to Rs. 2 crores.
- Under Rule 21: Rule 21 imposes a punishment of up to Rs. 5,000 on the company and each officer in default, plus a fine of Rs. 500 for each day since the default if the infringement is continuing.
Endnote
The filing of form DPT-3 is for much more than just the loan and/or deposit. The submission of Form DPT-3 is based on the receipt of money in any form that is required for repayment/adjustment and is outstanding on March 31.
