Form DPT-3, referred to as the “Return of Deposits,” is an obligatory filing requirement that compels companies to provide crucial information regarding their deposits, outstanding loans, and non-deposit transactions. This regulatory obligation applies to all companies, with the exception of government entities. The primary objective of Form DPT-3 is to disclose any deposit-related activities or transactions that do not meet the criteria for being classified as traditional deposits. By fulfilling this requirement, companies not only promote transparency but also ensure compliance with regulatory standards and uphold financial accountability. In this article, we will delve into the intricacies of Form DPT-3 and emphasize its significance.

Origins and Development of Form DPT-3
In order to protect the interests of creditors and depositors, the Central Government, in consultation with the Reserve Bank of India, introduced an amendment to the Companies (Acceptance of Deposits) Rules 2014 through the Companies (Acceptance of Deposits) Amendment Rules 2019.

In accordance with this amendment, the Ministry of Corporate Affairs (MCA) issued a notification on January 22, 2019, stating that every company, except government companies, must file a one-time return using Form DPT-3. Additionally, this return needs to be filed annually. The incorporation of this requirement involved the addition of sub-rule (3) after sub-rule (2) in Rule 16A of the Companies (Acceptance of Deposits) Rules, 2014.

Applicability of Form DPT-3: Understanding the Filing of Deposit Returns
Form DPT-3 covers a wide range of monetary transactions and debts. The following categories of money or debts are subject to the filing of Form DPT-3:

1. Secured Debts: These encompass loans or obligations that are backed by collateral or security provided by the borrowing company.
2. Unsecured Debts: These consist of loans or debts without any attached collateral or security.
3. External Borrowings: Form DPT-3 also includes debts or borrowings obtained from external sources, such as financial institutions or banks.
4. Commercial Borrowings: Loans or debts acquired by companies for commercial purposes fall within the purview of Form DPT-3.

It is important to note that even if a company receives a loan from specific entities, it is still required to file Form DPT-3. Such entities include:

1. Holding Company: If a company obtains a loan from its holding company, which possesses a controlling stake, filing Form DPT-3 becomes mandatory.
2. Subsidiary Company: In the case of a loan received from a subsidiary company controlled by the borrowing entity, filing Form DPT-3 is necessary.
3. Associate Company: When a company acquires a loan from an associate company that exerts significant influence over the borrowing entity, filing Form DPT-3 becomes obligatory.

Eligible Companies for Form DPT-3 Return Filing
Form DPT-3, which involves filing the return of deposits, is applicable to several types of companies in India. The following categories of companies are eligible to file Form DPT-3:

1. Private Limited Companies
2. One-Person Companies (OPCs)
3. Public Limited Companies
4. Section 8 Companies

It is worth noting that government companies are exempted from the requirement of filing Form DPT-3.

Exemptions from Filing Form DPT-3
Under the Acceptance of Deposits Rules of 2014, certain companies are exempt from filing the DPT-3 form as per the provisions of the Companies Act. The exemptions primarily pertain to the filing of loan returns. The following types of companies are exempt from filing Form DPT-3:

1. Government Companies
2. Banking Institutions
3. Non-Banking Financial Companies (NBFCs)
4. Companies registered as housing finance companies under the supervision of the National Housing Bank.
5. Companies explicitly notified under subsection (1), section 73 of the Companies Act.

Documents Required for Filing Form DPT-3:

Form DPT-3 is a document that needs to be filed with the Registrar of Companies (RoC) in India under the Companies Act, 2013. It pertains to the return of deposits and information about deposits not considered as deposits. Here are the documents typically required for filing Form DPT-3:

1. Board Resolution: A copy of the board resolution authorizing the filing of Form DPT-3.

2. Auditor’s Certificate: A certificate from the company’s auditor stating that the company has not accepted any deposits that are in contravention of the provisions of the Companies Act, 2013.

3. Copy of Audited Financial Statements: A copy of the audited financial statements of the company for the relevant financial year.

4. Extract of Annual Return: An extract of the annual return filed by the company with the RoC.

5. Copy of Trust Deed (if applicable): If the deposits are held in trust, a copy of the trust deed must be provided.

6. Details of Deposits: Complete details of the deposits accepted by the company, including the name of the depositors, their addresses, the amount of deposit, the interest rate, maturity date, etc.

7. Details of Deposits not considered as deposits: If the company has transactions that are not considered as deposits under the Companies Act, 2013, details of such transactions must be provided.

8. Bank Statements: Bank statements reflecting the receipt and repayment of deposits, if applicable.

9. Any other supporting documents: Any other documents or information required by the RoC or deemed necessary for the filing of Form DPT-3.

Due Date for filing DPT-3

Previously, the deadline for submitting Form DPT-3 was June 30, 2023. Nevertheless, the Ministry of Corporate Affairs (MCA) has recently granted an additional month for filing, pushing the due date to July 31, 2023. This extension has been implemented in direct recognition of the difficulties arising from the MCA-21 Portal’s transition from Version-2 to Version-3. The MCA acknowledges the need to accommodate businesses and individuals during this period of change and aims to ensure a smoother and more convenient filing process by granting extra time.

Consequences of Default in Filing Returns

The consequences of failing to file returns correctly can have significant implications for companies. Let’s explore the potential penalties and repercussions that may arise from defaulting on the filing requirements:

Penalties Imposed on the Company
In cases where a company fails to comply with the filing requirements of Form DPT-3, the Ministry of Corporate Affairs (MCA) imposes penalties. These penalties can amount to either one crore rupees or twice the deposit’s value, depending on whichever amount is lower. It’s important to note that the maximum penalty that can be imposed is up to Ten crore rupees.

Penalties for Officers Responsible
Not only can companies face penalties, but the officers who are responsible for the default can also be held accountable for non-compliance. The repercussions for officers may include imprisonment for a duration of up to seven years. Additionally, these individuals may be subject to fines ranging from 25 lakhs to two crore rupees.

Penalties for Defaulting on Fine Payments
In cases where the company or responsible officers fail to pay the imposed penalty, further penalties may be levied. Defaulting on the payment can result in an additional charge of five thousand rupees. Moreover, if the fine remains unpaid, a daily fine of 500 rupees can be imposed starting from the day of default until the payment is made.

It is crucial for companies and their officers to understand the potential consequences of defaulting on filing requirements, as they can have far-reaching impacts on both financial and legal fronts.

In conclusion, Form DPT-3 plays a vital role in ensuring transparency, regulatory compliance, and financial accountability for companies. By adhering to this mandatory filing obligation, companies provide essential details about their deposit-related activities, outstanding loans, and non-deposit transactions, thereby fostering trust and confidence among stakeholders.