Form DPT-3: A Guide to Filing Form DPT-3 in India
Form DPT-3 is a critical compliance requirement under the Companies Act, 2013, in India. It mandates companies to report details of deposits or transactions not considered deposits to the Ministry of Corporate Affairs (MCA). This blog post explains the purpose, applicability, filing process, and key considerations for Form DPT-3, including a detailed list and table of transactions not considered deposits.
What is Form DPT-3?
Form DPT-3 is a return filed under Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014. It requires companies to disclose details of deposits accepted or amounts received that are not classified as deposits under the Act. The form ensures transparency in financial transactions and protects stakeholders by monitoring compliance with deposit regulations.
Form DPT-3
Who Needs to File Form DPT-3?
The filing requirement applies to:
All companies registered under the Companies Act, 2013, including private, public, and one-person companies.
Companies that have accepted deposits or have outstanding loans/advances (not considered deposits) as of March 31 of the financial year must file Form DPT-3.
Types of Form DPT-3 Filing
There are two types of filings:
- One-Time Return: For reporting outstanding receipts of money or loans not considered deposits, received from April 1, 2014, to March 31 of the financial year to which DPT-3 form first introduced.
- Annual Return: For reporting details of deposits or transactions not considered deposits as of March 31, to be filed by June 30 of the following financial year.
Transactions Not Considered Deposits
Under Rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014, certain transactions are explicitly excluded from the definition of deposits. Below is a list and table summarizing these transactions:
List of Transactions Not Considered Deposits
- Amounts received from the Central/State Government or any other government source with repayment guarantees.
- Amounts received from foreign governments, international banks, or multilateral financial institutions.
- Loans or facilities from Public Financial Institutions, Insurance Companies, or Scheduled Banks.
- Amounts received against commercial paper or other instruments issued per RBI guidelines.
- Amounts received by a company from another company (inter-corporate deposits).
- Subscription money received for shares or debentures pending allotment.
- Amounts received from directors of the company, provided they are from their own funds.
- Secured bonds or debentures with a first charge on tangible assets or compulsorily convertible bonds/debentures.
- Amounts received from employees not exceeding their annual salary under a contract of employment.
- Advances received for goods/services supply, provided the supply is completed within 365 days.
- Security deposits for the performance of contracts for goods or services.
- Amounts received under a promoter’s guarantee or agreement for property purchase, repayable as per the agreement.
- Amounts raised by issuing secured non-convertible debentures listed on a recognized stock exchange.
- Unsecured loans from shareholders, provided they are not more than 100% of the paid-up share capital and free reserves.
Table of Transactions Not Considered Deposits
| Transaction Type | Description | Conditions |
|---|---|---|
| Government Funds | Amounts from Central/State Government or guaranteed by them. | Must be from government sources or guaranteed by them. |
| Foreign Funding | Loans from foreign governments, banks, or multilateral institutions. | Subject to FEMA regulations and external commercial borrowing guidelines. |
| Loans from Financial Institutions | Loans from Public Financial Institutions, Insurance Companies, or Banks. | Must be from notified institutions or scheduled banks. |
| Commercial Paper | Amounts against commercial paper or instruments per RBI guidelines. | Issued in compliance with RBI regulations. |
| Inter-Corporate Deposits | Amounts received from another company. | Must be a company registered under the Companies Act, 2013. |
| Share/Debenture Subscription | Subscription money for shares/debentures pending allotment. | Must be adjusted against allotment within the stipulated period. |
| Director’s Funds | Amounts from directors of the company. | Must be from the director’s own funds, not borrowed. |
| Secured Bonds/Debentures | Bonds/debentures with a first charge or compulsorily convertible. | Must have a charge on tangible assets or be convertible within 10 years. |
| Employee Advances | Advances from employees under employment contracts. | Limited to the employee’s annual salary. |
| Advances for Goods/Services | Advances for supply of goods/services. | Supply must be completed within 365 days from receipt. |
| Security Deposits | Deposits for performance of contracts for goods/services. | Must be refundable as per contract terms. |
| Promoter’s Guarantee | Amounts under promoter’s agreement for property purchase. | Repayable as per the agreement terms. |
| Listed Non-Convertible Debentures | Amounts raised through secured, listed non-convertible debentures. | Must be listed on a recognized stock exchange. |
| Shareholder Loans | Unsecured loans from shareholders. | Limited to 100% of paid-up share capital and free reserves. |
Details Required in Form DPT-3
The form captures:
- Company Identification Number (CIN).
- Details of deposits accepted, if any.
- Particulars of transactions not considered deposits (as listed above).
- Outstanding amounts as of March 31.
- Net worth of the company (based on the latest audited balance sheet).
- Auditor’s certificate (mandatory for certain cases like deposits accepted ).
Steps to File Form DPT-3
- Gather Information:
- Collect details of deposits, loans, or advances as of March 31.
- Identify transactions not considered deposits using the list and table above.
- Ensure the company’s net worth is calculated from the latest audited financials.
- Board Resolution:
- Pass a board resolution authorizing the filing of Form DPT-3 and designating a director or company secretary to oversee the process.
- Prepare Documents:
- Compile financial statements and transaction details.
- Access MCA Portal:
- Log in to the MCA website (www.mca.gov.in).
- Download the latest version of Form DPT-3 from the portal.
- Fill the Form:
- Enter the required details, including CIN, financial data, and transaction particulars.
- Specify transactions not considered deposits as per Rule 2(1)(c).
- Attach supporting documents (e.g., auditor’s certificate, financial statements).
- Certify the Form:
- The form must be digitally signed by a director, manager, or company secretary.
- A practicing professional (CA, CS, or CMA) may need to certify the form.
- Submit and Pay Fees:
- Submit the form on the MCA portal and pay the applicable filing fees (based on the company’s authorized capital).
- Upon successful submission, a Service Request Number (SRN) is generated.
- Retain Acknowledgment:
- Download the acknowledgment receipt for records.
Due Date and Penalties
- Due Date: The annual return must be filed by June 30 of the following financial year. For example, for FY 2024-25, the due date is June 30, 2025.
- Penalties for Non-Compliance:
- Late filing attracts additional fees based on the delay.
- Non-filing may lead to penalties under Section 73 of the Companies Act, 2013, including fines for the company and its officers.
- Persistent non-compliance may result in legal action or restrictions on accepting deposits.
Key Considerations
- Accurate Classification: Use the list and table above to correctly identify transactions not considered deposits to avoid errors in reporting.
- Net Worth Calculation: Use the latest audited balance sheet to compute net worth, as discrepancies may lead to rejection.
- Nil Return: File a “nil” return if no deposits or exempted transactions exist, if applicable.
Why Compliance Matters
Filing Form DPT-3 ensures:
- Regulatory Compliance: Adherence to the Companies Act, 2013, avoids penalties and legal issues.
- Transparency: Stakeholders gain clarity on the company’s financial dealings.
- Investor Confidence: Proper disclosures enhance trust among investors and creditors.
Conclusion
Form DPT-3 is a vital compliance obligation for companies in India, ensuring transparency in deposit-related transactions. By understanding its requirements, accurately classifying transactions (using the provided list and table), and filing on time, companies can avoid penalties and maintain good corporate governance. For complex cases, seeking professional assistance from a chartered accountant or company secretary is advisable.
